The takeover of Lucas by Varity and, in turn, the takeover of Varity by TRW are clear examples of the rapid changes going on in the world market, Zimmerer said while speaking at the inauguration of the fourth manufacturing plant of Mico Bosch here at Sitapura.

Zimmerer said that already three such plants were in existence in India and their working had turned out to be quite satisfactory. Mico was the largest manufacturer of diesel fuel injection equipment in India and one of the largest in the world. The Jaipur unit will mainly concentrate on manufacturing distributor pumps.

The Jaipur plant had the latest technology with split-micron accuracy. The plant covered an area of 9,770 square meters in the Sitapura industrial areadeveloped by RIICO. On the plant, Rs 88 crore had been spent, and by 2001, the expenditure would mount to Rs 250 crore, said the Mico chairman.

Last year, Bosch's turnover was $28 billion and world-wide it employed 1.86 lakh people. The company had decided to invest 50 per cent of its investment in fixed assets out of Germany.

Bosch has subsidiaries and affiliates in 47 countries, with manufacturing sites in 32 countries. Of these 175 sites, 133 are out of Germany, said Zimmerer.

On the working environment in India, Zimmerer said that it was ambivalent with low wages and low productivity. The need is to put to maximum use expensive investments. ``In a modern manufacturing environment, making products matching international quality standards demands a high degree of investments,'' said Zimmerer.

Mico managing director H Bertling said that his company's need to set up an additional plant at Jaipur was based on the expected medium-term development of the Indian automotive market on the one hand and theintended emissions legislation of the Indian government on the other.

In Europe, about 30 per cent of passenger cars are diesel powered; What is surprising to note is that even in upper middle-class cars like Mercedes E-Class or BMW 5-Series, diesel has gained triumphant advantage. In Luxury cars, too, diesel will be used.