Business Drive

Kia to retain position in brand new car market

Hiran H. SENEWIRATNE

One of the popular Korean auto brands, Kia is now in the process of retaining a five per cent market share in the brand new car market sector, despite the current economic conditions.

Managing Director Car Plan Limited, Mahen Thambiah told the Daily News Business that its motor cars are becoming very popular among many young and young at heart people, since it is projecting an image of a sporty vehicle at an affordable price.

With these developments, the company is going through an internal restructuring programme. With the restructuring procedure, Kia Motors Lanka Limited will be the sole importer of Kia vehicles to the country while Car Plan (Pvt) Limited, will be the main distributor of Kia vehicles, he said.

The company has already appointed, islandwide distributors/dealers to retain the exiting market share in the country, he added. The company invested Rs. 60 million to refurbish their Colombo Union Place showroom and to upgrade the service facilities with new equipment for the service centre, he said.

The company has made all the arrangements to import the full range of motor vehicles to the country after the internal restructuring programme, Thambiah said.

“This is the key to our success to capture the Sri Lanka brand new motor vehicle market, he said. Thambiah said that in the year 2007 the company was able to maintain a five per cent growth with the selling of 300 units and expected to retain the same growth in this year with the current market challenges in the country.

Thambiah said that their main target audience is the sporty young people in the country, “but in terms of volumes it will be a challenge for the country with the current economic situation”,

Sala introduces car MP3player

Sala Enterprises, the company that brings innovative products to the local market introduces a car MP3 player to Sri Lanka.

Managing Director of Sala Enterprises Chinthaka Wijewickrama speaking to Daily News Business, said, “the new MP3 player could be plugged in to the car cigarette lighter socket for power. This will read MP3/WMA files from USB flash disks or SD/MMC cards, transmit music signals over car FM tuner and then enjoy the music via the car stereo.

Consumers could purchase car MP3 players with or without a remote control. This comes with a blue LCD screen which displays song titles, name of the artist and track numbers.

A significant feature of this MP3 player is that no wiring is needed for listening to the music. This will also support external audio players such as CD and VCD players, he said.

Customers can listen to their favourite songs while they are driving with excellent sound quality, he said.

Chrysler and Jeep special offer from DIMO

Diesel and Motor Engineering PLC (DIMO), the authorised distributor of Chrysler and Jeep in Sri Lanka has announced a special offer on these automobile brands.

Now customers can afford to have that true Chrysler and Jeep experience. For all customers who upgrade their driving experience to a new Chrysler or Jeep 4x4 from now until March 31 have the opportunity to drive away in another brand new car absolutely free. This offer presents some rare benefits where customers could save upto Rs. 3 million on limited vehicles available, cleared prior to the recent import duty increases.

DIMO is also ensuring a free comprehensive maintenance for 2 years from the date of delivery. This takes care of all lubricants, filters, services, tyres, wear and tear, free of charge. DIMO’s dedicated staff, modern after-sales facilities along with their islandwide 24-hour road side assistance ensures that Chrysler and Jeep customers’ mobility is backed by the best of services.

This special offer, valid only for a few weeks, is focused towards the affluent in the society who prefer to travel ‘First Class’ and value the good things in life. These brands share some of the latest innovations in engine and transmission technologies developed by Mercedes-Benz. It is the fastest growing luxury sedan in Sri Lanka selling over 60 units within a short time span.

This limited time offer also extends to the pioneer of the 4x4, the unmatchable Jeep.

This includes the legendary Jeep Cherokee, Jeep Grand Cherokee and the Jeep Commander. The Jeep Cherokee with its ‘go anywhere, do anything’ attitude is built in the same spirit as the original Willys MB.

Tata Motors plans to raise millions to finance J-LR deal

Tata Motors plans to raise nearly Rs 4,000 crore by selling securities in the domestic and international markets to part finance its imminent acquisition of Jaguar and Land Rover from Ford Motor.

The Tata Motors board on Tuesday approved the fund raising proposal. “The funds are being raised to part-finance overall funding requirements to meet some of the strategic plans,” the company informed the stock exchanges. Tata Motors needs money to acquire the two Ford luxury brands as well as launch the world’s cheapest car, Nano, in October.

“The company has major growth plans for expanding its position in the domestic and global markets in both the commercial vehicle and passenger vehicle business. This will be achieved by upgrading and enhancing the company’s product portfolio, expanding manufacturing facilities in India and strategic acquisitions and alliances in India and abroad,” the company said in a statement.

The Tata Motors stock slipped 2.21% to Rs 659 on Tuesday after the announcement on selling securities. It may be mentioned that the company had passed a resolution in its 2006 AGM to raise long-term resources worth Rs 10,000 crore.

While the organic growth plan requires money over the next 3 to 4 years, the acquisition opportunities will have to be financed up front. A source close to the development said Tata Motors will borrow from financial institutions to finance the Land Rover-Jaguar deal. The proceeds from the proposed share sale will be utilised to repay the loan, he added.

The Tatas are likely to fork out over $2 billion for the acquisition of these marquee brands, which Ford has put on the block to shore up its balance sheet and reduce debt. ET had reported in its February 25 edition that Tata Motors had started the process of raising nearly $2.5 billion, mostly from the overseas markets, by giving the mandate to a battery of banks including Citi and JP Morgan, StandardChartered, BNP Paribas and SBI.

It is learnt that the funds is being raised against the balance sheet of Tata Motors. In other words, the borrowing will have an impact on the balance sheets of Jaguar and Land Rover.

Tata and Ford are expected to sign an MoU in the next few weeks. Ford had announced that Tata Motors was the preferred bidder on January 3. Later, Jaguar had said it is ‘relaxed’ over the prospect of acquisition by the Tatas. Economic Times