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Thursday, July 22, 1999

Daewoo gears up to export its `big small car' to Europe, Africa 

Abhinaba Das  
Mumbai, July 21: "Best quality best product, our target global export," is the new slogan that has caught the fancy of the 2,500-and-odd employees at Daewoo Motors India's Surajpur plant.

After delivering Cielos, Matizes and Nexias to the Indian middle-class, the Indian company is now gearing up to make its mark on the global arena. The initial target: to export its "big small car" Matiz to Europe and Africa.

DMIL has already received an order for the "best small car" from Egypt and the first export consignment will be delivered next month. Hectic preparations are on to ensure that the product meets the total satisfaction of the overseas customer. The company hopes to export 400 Matiz cars over the next two months.

The company is aware that the job is not at all easy. "There is a perception problem that Indian-made cars are not truly of international class. Overseas customers tend to prefer Matizes from Korea and feel that the Indian product is not at par on qualitative terms. We are struggling tocorrect this perception," DMIL vice chairman Shin - Jung Kim told The Financial Express.

"Our parent company is anyway finding it difficult to cater to the steady flow of orders for the small car. In such a situation if we are able to convince the overseas buyer that the Indian product is just as good, it will give a tremendous boost to our exports," Kim added.

The effort to improve quality on all possible parameters is visible all round the factory premises. The quality drive is best summed up in the new slogan that is doing the rounds in the Surajpur facility: "Hum banayenge, duniya chalayenge

", or "We will make, and the whole world will drive".

DMIL's exports, which have so far been restricted to auto components like gear boxes, engines and body panels, aggregated to $20 million last year. With car exports commencing next month, the company is optimistic that export income will multiply in the current fiscal.

Car exports will, however, be restricted to the Matiz, and there are no proposalsat this juncture to sell its mid-size models - Cielo Executive and Nexia - in the international markets.

On the domestic front, the demand for Matiz is slowly picking up, although it is yet to pose a serious challenge for Korean rival Hyundai. The Santro has been among the highest selling cars in its category with cumulative sales in eight months (till June) totalling 30,331 units. DMIL, on the contrary, has sold 7,000 cars in the first quarter and expects to touch an output level of 40,000 cars in the current fiscal.

The Korean chaebol has already pumped in Rs 4,000 crore in its Indian venture, and company officials say that the long-term prospects are immense. "Only 7 out 1000 persons own a car in this country, as compared to 100 in Malaysia. With buoyancy in the economy, the ratio, we are confident, will improve to at least 50 cars per thousand in the medium term," DMIL chairman KH Nam said.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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