| Date: |
14-07-2009 |
| Subject: |
Bavina Cars to outsource parts |
Bavina Cars India Ltd plans to outsource over 80 per cent of the components for its plug-in series hybrid passenger car. The company will import transmissions from BorgWarner (NYSE:BWA) in the US and outsource sheet metal parts from Caparo and motors from Bosch and Siemens. (NYSE:SI) Plug-in series hybrid cars are battery operated with an on-board petrol engine of smaller capacity to power the batteries, enabling the car to run longer distance on a single charge. Mr K Babu, Managing Director, Bavina Cars, told Business Line that the company would outsource most of the items except for skin panels. Bavina is investing Rs 300 crore to set up a manufacturing facility in the Special Economic Zone in Ranipet, about 110 km from Chennai. Of this, Rs 75 crore would be equity and the rest from banks. It would have a capacity to make 40,000 cars per year with technology support from Velozzi of the US. A one-time technology fee would be paid to Velozzi for technical support and hand-holding, he said. The company will roll out two variants — a base version and a fully loaded version — by early 2011.
Source : hotstocked.com
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