Even as Tata Motors is working on its ambitious Rs 1-lakh (Rs 100,000) car a Maharashtra-based company Kandaa Motors on Thursday said it is developing a Rs 1.5 lakh (Rs 150,000) car which is expected to be out in next one year.
"Work has already started on the project, which is expected to see a 800 cc car and we expect to design a prototype in the next 12 months," Kandaa Motors chairman and managing director R S Kandaa said at the Auto Expo.
Kandaa said the company was starting with initial investments of about Rs 200 crore (Rs 2 billion) for the ambitious products. Asked how the company, a manufacturer of precision pressed parts, will finance the project, he said it would mostly be through internal accruals.
"There are many NRIs who are willing to support us in this project and ready to make investments," he added.
On how the company would keep the cost low for bringing out the car for Rs 1.5 lakh, he said, against big manufacturers who have a lot of overheads to take care of Kandaa Motors was going ahead with the minimal but adequate man power.
The company has plans to source the engine for the car by Aurangabad-based Lombardini while it will source the other components from the open market.
He also added that the car would 'fully meet' the stipulated safety and emission norms.
As part of its ambitious plans in the automobile segment the company today unveiled a 100 cc motorcycle which has been developed in-house.
"We have invested Rs 20 crore (Rs 200 million) for this and are looking at production capacity of 500 units per day to begin with," Kandaa said.
And added if it could develop a motorcycle the car is not a distant dream.
The Pune-based company had a turnover of around Rs 25 crore (Rs 250 million) in the last fiscal.
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