Naza plans to setup CKD plant in India
Naza Automotive Manufacturing Sdn Bhd has plans to set up an assembly plant in southern India, possibly in Chennai. Chennei is home to a number of automotive plants like Hyundai, Ford, Mitsubishi, BMW, Mahindra and Apollo Tyres, and is base for 30% of India’s auto components industry and 20% of the Indian vehicle industry.
Naza plans to go international with it’s Naza Sutera and Naza 206 Bestari models, and India is one of it’s target markets. The Indian passanger car market is big – 1.3 million new car registrations in 2005 alone, and the middle class group of Indians who can afford to buy cars is growing. As import duties for cars in India is high, CKD assembly in India itself would be Naza’s best option to be competitive.
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Peugeot 206 India Advertisement
August 18, 2006 @ 2:59 pm
let me start ..
i’ve been to india b4, in april this year..
to be honest, the car there really basic..i travel from mumbai to nasik…using the Suzuki-Maruti car..a diesel powered car..and from nasik back to mumbai by Tata Indica…After i be in these car, i feel that, Wira is like a luxury car.
most of the car there using manual transmission and its very seldom to find a car fitted with sport rim..
Ask for NAZA Sutera and 206, if the pricing is OK, i not foresee any reasons it will fail..
wish them all the best
August 18, 2006 @ 3:21 pm
Proton should also setup ckd plant in India because all Proton’s model is
cheap.
good job,Naza
August 18, 2006 @ 3:36 pm
dis is too much lar .
August 18, 2006 @ 4:30 pm
yup… i read about this somewhere…cant remember..
anyway…Tan Sri Nasimuddin requested Datuk Samy to help him for this project especially in aquiring the land for the plant.
August 18, 2006 @ 4:35 pm
guys…remember the peugeout 206 advertising…one india guys build his own 206 from the scrap/junk car because 206 was his dream car.And them drive it around the town with proud..hahaha….mmm..bestari sales not good here..try luck in India lor…
August 18, 2006 @ 4:49 pm
you can view the ad here.
http://paultan.org/archives/2006/05/13/peugeot-206-india-advertisement/
August 18, 2006 @ 4:56 pm
guys…remember the peugeout 206 advertising…one india guys build his own 206 from the scrap/junk car because 206 was his dream car.
—————————-
that is a good ad indeed.
it is also a good business idea. rebadge a car and claim you developed it and sell to a poor third world country where nobody knows about cars. cant try that in msia anymore. even though our country hasnt progressed much these few years. the minds of the people surely has progressed.
August 18, 2006 @ 5:02 pm
I suppose the 206 would be quite a luxury for most Indians?
August 18, 2006 @ 5:18 pm
Hi Guys, can anyone assist me to get a review on Toyota Ipsum 2.0? I can’t find it la. Anywhere that I should look for it?
August 18, 2006 @ 5:24 pm
About the 206 ads, only 30secs but yet a wonderful ads.
Anyone missed the petronas seasonal greetings ads for this comming merdeka? What are they trying to say? That they got plenty of silver bullets?
August 18, 2006 @ 5:24 pm
Hi Paul. Do you know anywhere I can get the review for Toyota Ipsum 2.0?
August 18, 2006 @ 5:26 pm
opps off topic a bit, what i want to say is, wow, CKD in india? Thats wonderful plan.
August 18, 2006 @ 7:10 pm
And Proton goes to build a plant in Indonesia. To assemble Wira for the taxi market it seems. A foolish move when they could have exported what small qty required under AFTA. Now the plant is a failure with US$10 million burnt. How do you define irrational? Proton represents the worse of entrepreneurship, decisions made on personal whims and fancies rather than good business sense. This is what we get for a “national company” which is not allowed to fail.
August 18, 2006 @ 8:23 pm
at least got maruti and indicar,last time,ambassadorrr.like oue 1960 austin.
August 18, 2006 @ 10:16 pm
dont even tel me naza wil get ‘National car Status’ in india! good business move…plz naza..buzz off to india …u have been noting but crap to local auto market..done absolutly noting…
August 19, 2006 @ 3:02 am
I beg to differ, at least Naza has given Malaysians another choice. More competition to keep the others on their toes. If I remember correctly, the Japanese push for Vios and City was because of the introduction of Spectra CKD in 2001 at such competitive pricing.
August 19, 2006 @ 2:01 pm
Good la for our company to expand their business elsewhere. We will benefit from it for sure.
But Naza should not undermine Proton’s efforts to be the main carmaker (or rather, Proton shouldn’t let Naza weaken its efforts) because for Naza, going into car business is simpler: Just pick a car and make it into their own. They have had a car badge-engineered from Korea, China and France. It could be a Tata next, who knows?
August 19, 2006 @ 2:05 pm
Why not just export our local proton units to india directly?
August 19, 2006 @ 3:39 pm
I agree with Maibatsu.. despite Naza being reputed to be a national car maker, I do not think that they (Proton and Naza) are competing in the same market segment. Maybe except for the recent Sutera which was introduced. Having Naza around will give the consumers a better selection of products and encourage good competition between their local counterpart assemblers (eg Honda,Toyota and Hyundai)
It will be interesting to see how Naza operates in India. If it proves to be successful i guess the other 2 national car makers could hop into the same wagon as well. However plants would still need to be set up over there to allow the cars to be priced more competitively by taking advantage of the lower unit variable cost of production there and other local govt. incentives if applicable.
A complete revamp of the Proton models suspension system would probably be required for them to be marketed there. I do not see how the Wira’s absorbers would fair against the conditions of the roads in India as had been already suggested in the indian movies :p
August 20, 2006 @ 12:27 am
If no one poses a challenge to Proton, then for under RM60k, Malaysians will have little or no choice. As it is, it’s monopolised by Proton and Perodua (a subsidiary of Toyota via Daihatsu) only, so when you have a captive market, customer service, pricing, value for money, specifications all will suffer. When you have more competition and are customer driven – the end result is the customer gets more choice, better service, better value.
Don’t be a hater. As for rebadging, everyone has done it – Proton (Mitsubishi), Perodua (Daihatsu), Kia (with Mazda), SEAT (Fiat originally), etc. The question is, what do customers want, and what does the manufacturer want to give them. Many armchair experts say this is easy, that is difficult, etc. but in reality no business is easy. You might say Proton Gen2 is bad, but 2500 people buy it every month. You might not like Hyundai Accent, but 400+ people buy them every month.
Bottom line, if a Malaysian business thinks it can, and tries to expand and compete overseas, why not? I say go ahead and try. Not using taxpayers money anyway and their expansion may benefit some local supplier businesses in Malaysia, advertising agencies, IT, printing companies, parts suppliers, etc. I’m sure some of us or our friends/relatives may get some work. As a taxpayer I’d rather complain about local road conditions, cleanliness, cleanup of illegal posters, road safety, road courtesy, traffic conditions, noise and air pollution, fuel price hikes, etc.
August 20, 2006 @ 3:01 pm
why should we give Proton the solid advantage as main maker?
we live in an open business world, hope Naza will beat Proton.
they should consider Peugeot 1007 as replacement for Naza Sutera
August 20, 2006 @ 4:17 pm
proton should had taken this path earlier and not keep on monopolised our malaysia little and tinny market,had all the resources but lack capable interlactual thats can bring proton to success,buying MV agusta,say we can learn its motorcycle tehnology into manufacturing cars,bought for 200 over million euro,sold for 1 euro,if my son runs my buisness this ways ,i oredi long time died of heartattack or nervous breakdown,residence in tanjung rambutan hospital bahagia.buying lotus,keep on rebadging lotus tune on proton models dun see any benefits out of it,sales didnot increase,malaysian consumer didnot benefits on getting cheap lotus here,early local lotus were priced at rm.200k,what for?a company good with suspension and roadholding tuning,are we really benefits from it?,at least ,naza are on the right track,as compair to proton,think outsides malaysia if we will to growth,not keep asking for protection from our government and penalise the poor citizen,deprived them from having the oppotunity of buying a cheap car of their personal choices.
August 20, 2006 @ 10:46 pm
Speaking of dreaming to own a 206, I think the dealers in India might need to free “peugeot conversion” package for their customers. As what i heard from one salesman from Penang, 68,888 is very cheap already..summore i can give u free badges change from naza to peugeot. LOL
August 21, 2006 @ 3:12 pm
Well if Mercedes Benz can be successful in having thier plants in India why not anyone else?
Labour is still cheap there. Mind you, the Mercedes we have here are all assembled in India and I don’t see quality being compromised.
August 22, 2006 @ 9:02 am
Even the Inokom Atos u see on roads, is built from a CKD pack coming from India, not Korea.
August 26, 2006 @ 12:43 pm
Maibatsu, I hope Naza effort to built the car in India does not giving a bad reputation to Malaysia. Please read all the comments regarding Naza cars esp sutera…. This is what will happened to people who are greedy, they ignored the basic rules, ‘to be a great leader a man should learn, listen and think first before he speaks’.
It is good to have Naza as a assembler not as national car so called manufacturer.
Do you know that 206 does not have a coil spring for the rear suspension? instead those french ‘fries’ use a torsion beam? I have peeled of the NAZA topmark on the steering wheel of bestari… guess what?? ther are hiding a ‘lion’ behind their sticker…
September 14, 2006 @ 11:38 am
[...] Naza Automotive Manufacturing Sdn Bhd’s Tamil Nadu, India plant to assemble Naza and Kia vehicles was approved by the state government, but now Naza is requesting an additional 50 acres of land which brings the total up to 200 acres of land for the new factory. Earlier, Works Minister Datuk Seri S. Samy Vellu had assisted Naza with talks in gaining the land, and he says the state government will likely approve the additional land. A memorandum of understanding will be signed between the Tamil Nadu state government and Naza soon. [...]
December 29, 2006 @ 11:21 am
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