Daewoo to phase out Cielo, launches Nexia

While Nexia will carry a price tag of Rs 7,17,234(ex-Mumbai), the Cielo Executive has been priced at Rs 5.89 lakh in Mumbai. Nexia, however, will be less expensive than its counterparts in the mid-size segment which include the Honda City (Rs 7.25 lakh), Mitsubishi Lancer, Opel Astra (Rs 7.3 lakh) and Ford Escort (Rs 7.16 lakh).

Nexia, which has already been launched in the European market, would be displayed at the Mumbai auto show beginning tomorrow. Bookings for the new luxury model will start from April 12, and deliveries will begin in May, Park said.

Earlier on Thursday it had announced launch of four variants of Matiz. With this, the company will increase its presence in all the segment of Indian automobile market, ranging from Rs 2.5 lakh tagged Matiz to Rs 7.17 lakh Nexia. The company’s 72,000 per annum production capacity plant in Surajkund would be used to produce 60,000 Matizs to feed both the domestic and export market. Of this, 30,000 Matiz would be produced for the Indian market and the rest would be exported.

Daewoo managing director SG Awasthi said in the fiscal 1999 the company has sold 5,000 Matizs, far below the targeted level due to supply constraints from Korea. “We hope that we’ll be able to meet the targets for the current financial as our cars would be indigenised to the tune of 70 per cent by July,” he said. At present, Matiz has 50 per cent indignation level and the company hopes to sell 30,000 units this year. DMIL has set up a sales target of only 12,000 cars for its Nexia and Cielo Executive model due to slow down in the mid-sized segment.

He said the four variants of Matiz had been launched keeping in mind the consumer feedback and sales pattern noticed by the company.

Ruling out any plans to bring a diesel version of any of its models, Awasthi said all over the world petrol cars are preferred over diesel due to better engine performance and low level of pollution. “Only in India, people are preferring diesel cars which start giving problems after two years of use. All the companies offering diesel cars in the pastare facing falling sales – like Ambassador and Padmini. Two years from now all those who have booked small diesel cars would be dumping their cars and going for petrol versions," Awasthi said.