The UB Group has put on hold its plan to foray into the sports car segment with Bangalore-based San Motors.
Last year, chairman Vijay Mallya had announced that the UB Group would make an investment of Rs 5 crore (Rs 50 million) and pick up a 26 per cent equity in the company. He wanted to call the 2200 cc car, priced at Rs 530,000, the Kingfisher Storm.
"The plan has been put on hold. Mallya wants certain changes to be made in the car, only after that will we go ahead," UB Group sources told Business Standard.
San Motors developed the Storm, a convertible, and the Streak, a sports coupe, with help from Godfroy Design of France.
The UB Group's interest in sports cars was meant to enhance the lifestyle image of its beer brand Kingfisher.
UB wanted to roll out a limited edition of the car, around 500 a year and targeted at the premium end of the market.
The car would have been India's answer to the Mazda Miata and Jaguar S-Type. The car's engine was sourced from Renault Motors of France.
The Storm has an acceleration of 0-100 kmph in under 11 seconds and a fuel economy of over 15 km a litre. Made of reinforced fibreglass, the car was to be produced at Goa unit of San Motors.
For Kingfisher, it was the third phase of diversification after beer and clothes. Mallya has been trying to project Kingfisher as a fashion statement.
After rolling out the Kingfisher designer label apparel range, he wanted to launch Kingfisher Storm and also wanted to brand Fashion Week as Kingfisher Fashion Week.
Last year, Lakme's three-year contract to sponsor the event came up for renewal. Since Lakme chose to continue as the main sponsor, Kingfisher remained an associate sponsor.
