Chinese Motorcycle Co Proposes India Arm For Engine Production

New Delhi, Sept 20 | Updated: Sep 21 2004, 05:30am hrs
After its proposal to manufacture motorcycles was rejected, Chinas Chongqing Lifan Motorcycle Manufacture Co has proposed to set up a wholly-owned subsidiary for assembly, manufacture and maintenance of motorcycle engines.

The company, which is one of the largest motorcycle manufacturers in China, has now modified the original proposal and now plans to assemble, manufacture, market and maintain motorcycle engines, motorcycle, motor boat, scooter, automobile and automobile engine.

It also plans to take up manufacture of petrol, diesel, LPG, CNG engine, generator, water pump, lawn mower, tractor, tiller, non-land vehicle and its engine.

It has now decided to keep motorcycle manufacturing outside its area of activity. The companys earlier proposal to manufacture motorcycles was rejected by the government, as the company was planning to import parts and components from China and assemble motorcycles here. The companys intention appeared to be for screw-driving operations and trading, which was not desirable. It also found that the planned investment was not adequate to take up manufacturing of motorcycles. The company now plans to take up machining assembling of supplied samples, material, parts, importing and exporting mechanical, electrical, electronic products, complete plant and its relative items, importing raw and auxiliary material, machinery, meters, parts and technology for research and production of companys products. It plans to invest Rs 12 crore in Pune, Maharashtra for undertaking such activities.

The company had entered into an agreement with Monto Motors over three years back for motorcycles. At present, Monto Motors, which has a plant in Alwar is manufacturing motorcycles, under an agreement with Lifan. The company is manufacturing 100 cc and 110 cc models, and plans to enter the 125 cc and 150 cc segments soon.