CMC Authorizes Premier Ltd. to Assemble Verica Van in India

Taipei, April 24, 2008 (CENS)--Taiwan-based auto maker China Motor Corp. (CMC) recently signed a technical cooperation agreement with Premier Ltd. of India to authorize the Indian partner to locally assemble the Verica mini commercial van/pickup.

CMC said that Premier would be the production base of the Verica in South Asia, with products produced to be exported to neighboring Bangladesh, Pakistan etc.

The Taiwan automaker did not rule out the possibility to invest in Premier to garner more business opportunities in the booming South Asia car market.

Huang Chung-chou, vice president of CMC, signed the agreement with Maitreya Doshi, vice chairman and managing director of Premier. Huang said that CMC is expected to export 3,000 unit/sets of Verica key parts to India per year.

The Premier Group started in 1944 by making machining centers and the group is the pioneer automaker in India, as well as a top-three auto dealer in that market in 1990s.

Huang said that India has about 1.1 billion people and the nation is the world's third-largest economy enjoying rapid economic development. The technical cooperation, the vice president added, allows CMC to gain a foothold in South Asia automobile market and opportunity to further develop business in the region.

In addition, Huang said, CMC would also help Premier develop right-hand-drive Vericas for export and supply key parts from Taiwan.

Locally produced in India, the Verica mini commercial vehicle would be renamed Sigma (for the van) and Roadster (pickup) and sold under the Premier brand. However, the mini commercial vehicle would be powered by a 2,000cc diesel engine developed by Peugeot, compared with a 1,200cc gasoline motor in Taiwan.

Industry insiders pointed out that CMC began talking with Premier in 2004, when it also began exporting white-body (vehicles without powertrain) Vericas to the Indian partner.

Some CMC senior executives said that Premier has responded positively to CMC's intention to invest in Premier, while the Taiwan automaker is evaluating related feasibilities. If the cooperation goes smoothly, CMC executives pointed out, CMC might sell its self-designed Freeca commercial/recreational van/pick to India in the future.