New Delhi, In a short span after Argentum Motors acquired the production facility of erstwhile Daewoo Motors, the company is set to expand its capacity for small cars to 4 lakh per annum. Argentum Motors would also start manufacturing 1-2 litre engines to cater to the demand for small cars.
?We are creating flexibility at our plant to suit a larger range of vehicles. Our existing facility, which can produce engines in the size of 1.3-1.7 litre, is being expanded for 1-2 litre,? said Mr Ajay Singh, Chairman, Argentum Motors.
He said that the company was also setting up a new paint shop and an assembly line which would have a capacity of 2.5 lakh-3 lakh cars per annum at an investment of Rs 500 crore.
?The new capacity would be in addition to our existing one, allowing us to produce 4 lakh small cars per annum,? said Mr Singh. The company had earlier said that the plant had a capacity to produce 2 lakh car bodies, 4 lakh engines, 4 lakh gear boxes and 35,000 aluminium die casting division per annum.
On the company?s interest to manufacture Nano in response to Mr Ratan Tata?s statements about Tata Motors open for licensed manufacturing of the car, Mr Singh said, ?We have no intention of making the Nano because of lower margins. But it has led to the whole world looking at India as a hub for small cars. So we are essentially looking at OEMs who would like to outsource manufacturing to India for their global operations.?
Initially, the company expects to commence its component business by May with exports mainly to the European market. Eventually it intends to contract manufacture cars.
?We are in the final stages of negotiation for manufacturing of components which would start by May. While we are talking to both European and American OEMs, our exports are likely to be to Europe,? he added. In the first year of operations, the company plans to utilise 25 per cent of its production capacity.
Regarding the company?s plans for contract manufacturing for commercial vehicles, Mr Singh said, ?We are talking to commercial vehicle manufacturers for helping us build bodies and other parts for this segment of vehicles. This includes CV companies who are looking to enter India with their products as well as those who already have a presence.? The company is promoted by former Hyundai President Mr B. V. R Subbu; Director promoter of SpiceJet Mr Ajay Singh; and Mr Ashish Deora
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