Entering into its first joint venture with a local automotive company in a foreign market, Mahindra in partnership with Ideal Motors set up its first automotive assembly plant in Sri Lanka. The new venture, Mahindra Ideal Lanka, is set to change Sri Lanka’s automotive industry, with the release of a slew of products over the next three years, while also bringing in new standards and competencies that will uplift the industry. The automotive assembly plant located at Welipenna, spread over 10 plus acres of a 65 acre property is geared to produce upto 5000 units annually, on a single shift operation according to Projects Head – Amanda Gooneratne, who together with Projects Director, Suren Galagoda, spearheaded the venture. The first model to be rolled out would be the KUV 100, a compact SUV, petrol K6+ variant to start off with, and which will be price competitive. This will be followed by other variants in the near future.
With a big vision for Sri Lanka’s automotive market, the Mahindra Ideal Lanka joint venture will drive growth in the local economy, promoting entrepreneurship through its industrial park, and with the localising of 4 components, that’s batteries, tyres, seats and exhausts. According to Gooneratne, the plant will also open up employment opportunities for over 200 people, both directly and indirectly over the next two years. Mahindra’s entry to Sri Lanka with the automotive assembly plant provides the local industry exposure to international production standards, training and human capital development, which will propel the industry forward. Adhering to international safety standards will be high on the agenda for Mahindra, with certified manufacturing processes being introduced throughout all its manufacturing stages. Local suppliers will also be required to deliver on the standards and guidelines as expected, which will help create an industry standard of excellence. The transfer of the latest technology in the automobile industry, nurturing Sri Lankan youth to become experts in the industry, is a significant value contribution from this partnership. Mahindra is one of the leading automotive players in the Sri Lankan market, with its presence spanning over a decade. It has lead the way by creating a compelling value proposition in an otherwise crowded segment. A global brand, expanding locally in Sri Lanka, Mahindra has an on-ground team to focus on the needs and aspirations of the consumers with a local office in Colombo. The launch of this automotive assembly plant is a significant milestone for Mahindra’s foray into the Sri Lankan market. The group is now fully equipped to deliver products customized to local needs, on time, with the excellent after sales service Ideal Motors is known for.
This new partnership will enable Sri Lanka to ‘Rise’ and manifest its glory through the ‘Made in Sri Lanka’ route”