Lokesh machines to move into car manufacturing
It is a kind of soothing balm for a battered and bruised YSR government. Machine tool major Loeskwara Rao has roped in former Hyundai India boss, BVR Subbu to produce what will be a global car for the Indian middle class.
The greenfield project may come up in Medak district, near Bonthapally where Lokesh Machines has a machine tool factory. The B segment car will ride on the technology European majors will be a kind of Airbus manufacturing, with different aspects of the car being sourced from providers across the world. The company christened MLR Motors will have Subbu as its Chairman with the Lokeswara Rao and his family staying away from the day-to-day operations. The car is going to be based on a new design and MLR will be designing it from scratch, develop it and produce it and possibly hit the roads by 2008.
The project is estimated to cost about Rs 1,250 crore and would provide an opportunity to an ancillary network involving an additional investment of about Rs 1,600 crore.
Lokesh Machines, is a supplier of components to several auto majors such as Mahindra & Mahindra and Ashok Leyland. It also has its own facility to produce three-wheelers. The new project will build three-wheelers and light trucks apart from cars.
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