Xenitis to join the low-cost car club

11 May, 2007

Among the many players who are mulling a foray into the Rs 1 lakh car mart is the West Bengal-based Xenitis group. The company has hinted at a car market entry and is likely to do it in association with the Chinese original equipment manufacturer Guangzhou Automobile (GAIG).

According to a report, the company has inked a technology agreement with GAIG in this regard. Xenitis, a Rs 6.5 billion group with IT, computer hardware and the motorcycle and automotive industries as its core activities, has lined up its proposed small car to hit the tarmac by October 2008. The Bengal based company expects to acquire the land for the assembly plant by the end of June this year.

It is also being rumored that Xenitis is studying the possibility of developing a car with a price tag of US$2,500.

Meanwhile, when it comes to small cars, the Tatas are indeed not alone. The Xenitis story is out, so is the plan of the country’s largest three-wheeler and second-largest motorcycle manufacturer, Bajaj Auto. Reports said that Bajaj is also in the process of developing a low-cost car. The company has already announced a four-wheeled cargo vehicle which will go on sale in 2009.
 

Auto Archives    Latest updates    Contact Us - Feedback    About Us
	Business	Motorcycles & Scooters	SUVs & MUVs	Cars