United Motors to produce three new Chinese Zotye Automobiles
View(s):United Motors Lanka PLC is expanding its assembly of Chinese Zotye Automobiles with a plan to introduce three new models including a sport utility vehicle (SUV) soon, a top official of the company said.
Chanaka Yatawara, CEO/Executive Director of United Motors, told the Business Times that the vehicle assembly operation was undertaken by a subsidiary Unimo Enterprises Ltd (UEL) at a plant at Ranala, Orugodawatte.
Unimo Enterprises Ltd markets a range of automotive brands ranging from Perodua compact cars from Malaysia, Zotye mid-sized SUV’s and JMC commercial vehicles from China and Yokohama tyres from Japan.
The company has also successfully secured the right within the auto assembly industry to assemble the Zotye brand while it has also made arrangements to expand its operations to accommodate the assembly of some of the other brands marketed by the company, he added.
He disclosed that at present it is producing the Zotye van for the local market.
The company has invested Rs 100 million in this automobile assembly plant on a two acre land in Ranala.
Although the plant has a capacity to produce 300 units per month, it is currently producing 20 units per month, he said adding that two out of threenew Zotye models will be launched in May and July this year.
The production will be increased to around 100 units per month after the launching of the two new models. The Zotye group is one of the leading small and medium sized jeep and car manufacturers in China. Locally assembled vehicles are exempted from excise duty and prices will reduce by around Rs.500, 000 per unit compared to the imported vehicle, he said.
The Zotye is imported in Semi Knocked Down (SKD) form and assembled incorporating more than 30per cent local value addition, as per the requirements set out by the Ministry of Industries. Body trimmings, paint, tyres, battery, seats, radiator and badges are all sourced locally.
The company continues to search for more local suppliers with a view to increasing the share of local components, he disclosed.