However, the company would work towards increasing the level of indigenous content in its vehicles from 40 per cent at present to 50 per cent by 1999-end, senior company officials said here. But, localising engines and transmissions is not an immediate priority.

Currently, the engines for its FH12 and Fl7 trucks are being imported from the parent company. "Though we feel that locally manufacturing the engines at our Hoskote plant would help us control costs, we need volumes to actively pursue this idea."

"Once our sales go up and reach a certain level, we will start manufacturing engines at our plant," the officials said adding that no time frame has been fixed for the same. The company has targetted a volume of about 3,000 units per annum for developing engines viably in the country. It has sold only 100 commercialvehicles in August-January, the first six months of its operations in the country.