BUSINESS

Swaraj Mazda to treble capacity of CVs

GETS INTO TOP GEAR: Yash Mahajan, Vice-Chairman and Managing Director of Swaraj Mazda (extreme right), at the launching ceremony of the new Swaraj Mazda bus at Chennai Trade Centre on Saturday. — Photo: R Shivaji Rao  

Corporate Reporter

CHENNAI: Swaraj Mazda Limited (SML), a leading manufacturer of commercial vehicles and buses, has drawn up plans to treble its capacity to 36,000 vehicles. Additionally the company would also put up an in-house manufacturing facility for turning out buses of contemporary designs, according to Yash Mahajan, Vice Chairman and Managing Director of the company.

Addressing presspersons here on Saturday, after launching a 30-seater ultra-luxury bus, Mr. Mahajan said SML would invest Rs. 250 crore over a three-year period.

Initially, the new plant would have a capacity to produce 9,000 buses, he said.

To retain technical tie-up

The company has also entered into a technical tie-up with two R&D firms in Malaysia for developing new variants of buses, Mr. Mahajan said.

Because of total shift of focus from commercial vehicles to passenger cars, Mazda Motor Corporation of Japan had withdrawn its financial interest from Swaraj Mazda and Sumitomo Corporation of Japan had acquired the equity holdings of Mazda, he said.

However Mazda would continue to be associated with Swaraj Mazda for supply of critical components and technical guidance.

Through the tie-up with Sumitomo Corporation, the company had made a substantial progress for a technical alliance with another Japan's leading commercial vehicle manufacturer for launching a range of products of the latter, Mr. Mahajan said. Besides a Mazda variant would also be launched in three months, he said.

SML would be targeting the tourism, information technology and healthcare sectors besides state transport corpora- tions as there was growing demand for buses in these segments, Mr. Mahajan said.

Swaraj Mazda has a variety of commercial vehicles in the range of 5.8-9.8 tonnes capacities. In the passenger segment, from the original 26-seater version, the company has buses in 12-41-seater range.

The company sold 12,353 vehicles in 2004-05 with passenger applications accounting for 37 per cent reflecting the distinct customer preferences for Swaraj Mazda buses, Mr. Mahajan said.