The Hindu : International / India & World : Indigo to be assembled in Russia

Online edition of India's National Newspaper
Friday, Aug 26, 2005

International

International - India & World

Indigo to be assembled in Russia

Vladimir Radyuhin

MOSCOW: A day after a Russian motor building company signed a contract to assemble the heavy-duty Ural trucks in India, Tata Motors announced plans to build Indigo cars in Russia.

The Ural Automotive Factory, part of the Ruspromavto holding, and the Indian-Russian joint venture Ural India Ltd. signed a contract on Wednesday to assemble Ural trucks from knock-down kits at a $100-million factory in Khaldia, West Bengal.

Ural trucks are widely used by the Russian armed forces to carry troops and equipment.

In another development, a Russian business daily reported on Thursday that Tata Motors was in negotiations to assemble up to 30,000 Indigo cars a year in Russia.

The Vedomosti daily quoted Tata's Russia and CIS Manager Amrit Kuruvila as saying they hoped to complete the talks within six to eight months. The cars would be initially assembled from kits supplied from India; gradually, the full production would be shifted to Russia.

Russian experts said Tata would face stiff competition from France's Renault and South Korea's KIA and Hyundai, which produce their cars in Russia, as well as from Russia's Lada cars.

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