Daewoo signs MoU with DGFT for Matiz

The Projects Approval Board (PAB) under the Ministry of Industry had earlier approved DMIL’s application for a Technical Assistance Agreement, paving the way for the launch of the Matiz.

The Technical Assistance Agreement envisages the transfer of technology from Daewoo Heavy Industries (DHI), Korea, to DMIL for the small car and subsequent royalty payment. As per the agreement, DMIL will pay a royalty of 3 per cent of the local value added for seven years and thelump sum of $2.7 million in six installments to DHI.

UNI adds: As per the MoU, DMIL can now import 60,000 completely knocked down (CKD) and semi-knocked down (SKD) kits of its small car.

Daewoo is the second car-maker after Fiat to sign the MOU under the revised guidelines.

Though a formal announcement of the new guidelines is yet to be made, the Government has decided to maintain the indigenisation levels at 50 per cent and 70 per cent for three and five years respectively, but changed the formula of calculating the localisation levels.

DMIL intends to make India an export base for the small car after the initial stabilisation of production of passenger cars.