PUNE, July 31: Audi AG, the German car manufacturer, is close to finalising a tieup with Autorola of the Sai group owned by the Pune-based Kalmadis, said manager (new markets) Berndt A. Buchmann. Skoda officials said a final decision would be taken by October. Audi and Skoda are wholly owned subsidiaries of Volkswagen of Germany.

Audi will introduce the A6, launched in Europe last May, to compete with Mercedes Benz. Buchmann was confident that the car would hit the market by the second half of 1998. Skoda director (Indian operations) Imran Hassen, though, said the car would roll out by 1998-end. The Felicia and Octavia too will be introduced by end 1998, and are likely to be assembled in completely knocked down form till the production base is commissioned. Skoda is yet to decide on a partner and the location of its plant though Ranjangaon near Pune has emerged the frontrunner, Hassen said. Several domestic component makers have approached Volkswagen to set up ventures.

Skoda is also exploring sites in Gujarat, Indore, Rajasthan and Bangalore. Hassen said the company would require one million square metres to set up the plant, which would produce 60,000 cars a year by 2000. Buchmann said Audi would produce 6,000 cars by 2000. Other models like the A3, A4 and A8 will also be introduced. Hassen said the factors which would determine the site were the location of its suppliers. Our Mumbai Bureau adds: Volkswagen has expressed its desire to set up shop in Maharashtra with an investment of over Rs 1,500 crore.

A high-level team headed by vice president (Asia region) Dr Wagner held preliminary talks with state government officials on Tuesday night. The government offered them necesary assistance and suggested that their plant be set up at the newly developed "auto hub" at Ranjangaon in Pune district.

Volkswagen was also offered other sites including Shendre-Aurangabad, New Butibori-Nagpur and Sinnar-Nashik. Company officials sought clarifications on issues relating to infrastructure, power, water, telecommunications and labour in Ranjangaon. The second meeting will take place in September.

Meanwhile, tractor manufacturer Escorts will soon hold talks with state chief minister Manohar Joshi on its site allotted at Ranjangaon.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.