Naza to invest RM953m in India

Malaysian auto company Naza Automotive Manufacturing Sdn Bhd plans to invest US$259 million (RM953.01 million) in a car making plant in southern India to leverage the small car boom in the country, a newspaper report said on Aug 24.

The firm will soon sign an initial agreement with the state government of Tamil Nadu to set up the plant and may roll out its small car by late 2007, The Times of India newspaper said quoting unidentified sources.

The report said the plant will be located at Sriperumbudur, where South Korea's Hyundai Motor Co and Ford Motor Co are already present.

"The venture might also become the entry point for South Korea's Kia badged vehicles in India," the newspaper said.

The Malaysian firm was also eyeing India's growing motorcycle market, it added.

Tamil Nadu government officials could not be reached for an immediate comment.

India's passenger car vehicle market is forecast to nearly double to 2 million units by 2010. The market for small cars, more than two-thirds of the overall market, is now dominated by Suzuki Motor's Indian arm, Maruti Udyog Ltd and Hyundai Motors. - Reuters