Joint venture to develop electricity-powered Micro car

Hiran H. SENEWIRATNE

NEW PROJECT: Sri Lanka's only car-manufacturing company, Transmec Company, will sign an agreement with a US company, Axia Group, for a venture capital to develop electricity-driven motor vehicles for the local market.

Transmec which manufactures Micro brand motor vehicles will be planning to develop an electricity version of their vehicles with the agreement, Transmec Chairman / Chief Executive Officer Dr. Lawrence Perera said.

He said that Axia Group would invest US$ 3 million as a venture capital company. They will transfer new technology and know-how to develop the electricity version of the Micro cars. Currently the company has two factories, which are situated at Polgahawela and Seeduwa, manufacturing 60 cars per month.

The company being the 30th car manufacturer in the world is planning to manufacture 200 vehicles per month with the joint venture of Axia Group in USA for the purpose of venturing into the export market, Perera said.

"The company had humble beginnings and took one and a half years to develop the first Micro car to the market. Only Seylan Bank supported the company to make their idea a reality," Perera said. The company has designed several models of vehicles for the market starting from Rs. 660,000 per unit.

Dr. Perera is optimistic that the electric version of the Micro car will be a major breakthrough for the Sri Lankan car market in the future.

Perera emphasised the importance of having an organisation to assist up and coming and innovative companies in the country. He said that Start and Improve Your Business Association in Sri Lanka (SIYB) could help them in a greater manner.

Perera commented that SIYB's Expand Your Business (EYB) strategic management package developed by the International Labour Organisation (ILO), could help new entrepreneurs in a big way.

EYB, a specialised agency of the United Nations system, is practical, modular based, interactive and flexible to meet the specific needs of growth-oriented entrepreneurs.

The EYB started by SIYB is affiliated to ILO's Global Programme for Enterprise Development. It is highly action oriented and provides opportunities to entrepreneurs to stimulate an expanding business to make strategic business decisions with continuous counselling and links supportive relationships with other stakeholders.