ICML world car postponed

The ongoing recessionary trend in the global markets has forced Sonalika Group company, International Cars & Motors Ltd (ICML) to go slow on its small car plans, Business Standard has reported.  The Chandigarh-based automotive company was supposed to roll out its world car by year 2010 in Europe, the US, and India. ICML has shelved its plans to launch the world car due to current market conditions.

Raman Mittal, executive director, International Cars & Motors Ltd, was quoted as saying, ” The automobile industry is going through a very difficult and challenging time. We therefore had to change our plan as the World Car project focused on both export and domestic markets.”

Meanwhile, it has said that its strategy to unveil its concept car ‘Inspire’, showcased at the Auto Expo 2008, is on track. Inspire is expected to hit dealerships across the country by year 2010.

ICML is working on the World car project from in collaboration with Italian design house Pininfarina. In 2008, a deal was struck with regard to the mega project, and ICML had lined up an investment of close to Rs 700 crore for the design and production front.

As per the venture plans for the World Car, ICML had been mulling over financial support through internal accruals, debt and equity placements, reports say.

The ICML world car was to be made in ICML’s Himachal Paradesh plant at Amb.

ICML also has export plans for the world car. It will make CKD units of the car in its Indian plant, and assemble the world car at various places worldwide.

At the time, the ICML world car was unveiled, in 2008, the company had said that the production capacity of the world car would be 50,000 units per year.