News: Indian carmaker Atul Auto will establish a manufacturing facility for diesel-powered three-wheelers near Colombo in Sri Lanka, reports the Economic Times. The automaker has received approval from the country's Board of Investment. It plans to introduce three-wheelers with spark-ignition engines running on gasoline, compressed natural gas and liquefied petroleum gas, which will be targeted at intra city passenger and cargo transportation.
BMI View: Atul Auto ' s plans for an assembly plant in Sri Lanka echoes BMI's view that the country could become a viable alternative production hub for Asia. As well as strong domestic demand, BMI's suggestion that Sri Lanka could become a full production hub in the future is predicated on the availability of raw materials such as rubber-based products and textiles.