They said Kazwa would be the first luxury car to be produced in Kerala and the first customised car in India. The buyer can choose to add or alter the interior, seating or the like, keeping the basic design intact, they added.

The car would be available in different shades according to the choice of the consumer. The company is sourcing nearly 70 per cent of the mechanical parts, including the2,000cc diesel engine, from Hindustan Motors Ltd.

Rajah Motors has also tied up with Hindustan Motors for marketing and after-sales service of Kazwa, they said. However, the basic design for the vehicle was developed by the company itself.Initially, the company is planning to introduce the vehicle only in Kerala and Tamil Nadu markets.

The company's production unit in Chavakkad at present has a capacity to produce 150 cars per annum. This year's target is 50 cars for which the booking is already over, they added.

They said the company, despite being in the small-scale sector and highly labour-intensive in nature, has not so far got any excise duty exemptions. If the government extend duty concession, that would help the finances of the company in a big way. That would also help the company to slash the price of the vehicle considerably, they added.

They said the company would bring out a mini four-seater car by the turn of the century. They said the two-cylinder diesel car would be priced around Rs1.5 lakh.