"The idea is to set a benchmark for excellence which will be of great help to our existing dealers. This will inspire them to improve quality of service in their own outlets," sources said. The concept of company-owned networks was started by Hyundai Motors India through auto plazas which are manned by trained personnel. Other manufacturers like Fiat Ind Auto and General Motors India (GMI) are in the process of selecting some dealers in the big metros to import CBUs in the high end range. While GMI has planned to bring in few numbers of the Opel Vectra and Zafira into the country, Fiat has tentatively drawn up a plan which would see vehicles like the Alfa Romeo 166, Fiat Coupe and the CNG-powered Multipla in its showrooms.

The objective, similar to that of Hyundai and Daewoo, is to boost the brand image of the manufacturer concerned in India. It will send a signal of not only the company's capability in making luxury models but also its long term commitment here. Consumers will, of course, be free to buy these cars though this is not expected to exceed a few hundreds annually.

Mercedes Benz India, it may be recalled, resorted to CBU imports of the 12 seater MB-100 to gauge market reaction to the vehicle. While no long term plans have been firmed up yet, it is quite logical to presume that the company will go in for full scale manufacturing of the MB-100 if there is enough demand to justify this move. Daewoo incidentally plans to increase production of the Matiz from April to around 6,000 cars a month of which 1,000 will be exported.

At present, exports number 500 cars and the company will maintain this level and divert the balance 4,500 units to the local market. It is still working on its plans for a multi-utility vehicle to India as there is enough capacity at the Surajpur plant. The assembly line for buses can be used comfortably given the tepid response in the market. For the moment, however, all new launches could be put on hold owing to the imminent sale of Daewoo to another international automaker.