Mahindra & Mahindra Ltd., the automotive arm of the Mahindra Group, has started operations at its first assembling plant in Sri Lanka, jointly with local firm Ideal Motors.\n\n\n\nMahindra Ideal Lanka will assemble KUV100, a compact SUV, with a production capacity of 5,000 units per annum. \n\n\n\nSpread over 10 acres, the plant is expected to cater to customers of Sri Lanka. \n\n\n\nNalin Welgama, Chairman of Ideal Motors, said the two companies would be able to reduce costs thanks to the investment. \n\n\n\n"Today\u2019s inauguration signals the epitome of our dream and ambition, which was to assemble a passenger vehicle locally, by partnering with an auto major like Mahindra known for their tough and rugged DNA...With this local assembly unit, we will now be able to deliver products in reduced time and at more affordable prices."\n\n\n\nMahindra Ideal Lanka will source four components locally -- battery, tyres, seats and exhaust. \n\n\n\nThe factory, located at Welipenna, near Colombo, will provide employment in the tune of 200 people directly and indirectly over the next 2 years \n\n\n\n\u201cWe in Sri Lanka can now proudly join an elite list of recognized car assemblers around the world\u201d said Deputy Chairman Ideal Motors, Aravinda de Silva. \n\n\n\nMahindra has been present in the Island country for over 10 years, and appeals to the value conscious buyer.\n\n\n\nThe new assembly plant will roll out the KUV100, petrol K6+ variant to start off with, followed by other variants in the near future, it said.\n\n\n\nDr. Pawan Goenka, Managing Director of Mahindra & Mahindra Ltd, said the plant will equipped his firm to deliver products customised to local needs, on time.