Foreign consortiums in discussion with Micro Cars to invest US$ 500 mn in latest venture

From left:  Higer Bus Company Limited Regional Manager Tom Qian and Micro Cars Founder/CEO Dr. Lawrence Perera
Pic by Pradeep Pathirana 

• Micro Cars to build EU standard buses, commercial and land vehicles, Diesel Multiple Units (DMUs)
• Higer Bus Company eyes to set-up assembly line with Micro in 2-3 years 

Three foreign consortiums from Europe, United States and China are in discussion with Micro Cars to invest US$ 500 million in the latest venture to build EU standard buses, commercial and land vehicles as well as Diesel Multiple Units (DMUs) locally. 

“Micro Cars will build EU standard buses, commercial and land vehicles and diesel multiple units in Sri Lanka. The investment will come in two stages, initially, it will be US$ 300 million and then US$ 200 million in the next stage,” Micro Cars, Founder/CEO, Dr. Lawrence Perera announced at the Micro Cars headquarters in Kelaniya on Tuesday. 

 Further, he revealed that Micro Cars will shortly sign agreements with three European and Asian Fortune 500 companies to acquire the necessary technology and for training of employees for the venture. 

In addition, Higer Bus Company Limited has already come on board to provide necessary technical support for Micro Cars and  has also expressed interest in setting up an assembly line in Sri Lanka. 

“We are planning to have an assembly line in Sri Lanka with Micro within next 2-3 years. We will first focus on the Sri Lankan market and then we will look at exporting to the region.  We are looking to assemble 200-500 units in Sri Lanka depending on the demand. We can gradually increase the local value addition with local components,” Higer Bus Company Limited, Regional Manager, Tom Qian revealed.

The China-based Higer Bus had manufactured 150,000 buses in 2019. 
Micro Cars expects their new venture to generate over 2000 direct employment and well over 3500 indirect employment opptrunties within the country in the skilled fields of automotive and rolling stock engineering/designing, IT, accounting, management/administrative staff and much needed vocational skills training to the youth. 
“The locally-built buses will be equipped with Euro IV environment-friendly engines, ABS brakes, air suspension, air conditioning, emission reduction technology, incorporation of smart technology 4.0, GPS and automatic fare collection system and an e-ticketing system to ensure comfort, safety courtesy and promptness of service as well as durability,” Micro Cars said issuing a media release. 

Micro Cars came up with the concept of Lanka Econo Rail initially way back in 2004. However, it couldn’t be implemented due to action of certain State officials despite securing Cabinet approval.
“The system is called Diesel/ Electric Multiple Unit (DMU), where every three carriages are powered with medium horse power engines. These DMUs are more economical in terms of production cost and maintenance when compared to importation of the same or the conventional locomotive,” Micro Cars official noted.
As per President Gotabaya Rajapaksa’s policy declaration, Dr. Perera hopes government’s support would be extended for the ambitious project. 
“The moment we have government approval by placing an order, we can move ahead,” he added. 

He noted that Sri Lanka could save foreign exchange worth US$ 7 million from one set of DMU through import substitution. 

“The local value additions for trains and buses would be difficult to determine. We will use local tyres, batteries and other rubber components. However, our main value addition will be labour initially,” Dr. Perera said. (NF)