Launching the car here, Daewoo Motor India Ltd (DMIL) Managing Director, S G Awasthi told a news conference the company would not launch its planned economy models of Matiz.

DMIL had earlier planned to introduce Matiz in three variants, but the idea was dropped after ascertaining market response through a study, Awasthi said.

Reiterating that DMIL was `not in a fix' over the pricing of the car, he said the launch was delayed in order to conduct the study first and chalk out strategies.

Giving reasons for introducing the car in only one version, Awasthi said there would be no demand for the economy models in near future.

"We could have gone for a cheaper version. But ourstudy found that by and large people prefer cars with air-conditioner, and other latest features. The economy model compels customers to make a lot of compromises," he said.

Matiz deluxe is equipped with features like air-conditioner, central locking, heating and power windows (only for front doors).

"In today's competitive situation, no one can afford to go for a price which is not cost competitive. We do not believe in stripping down models in the name of economy as it compromises on value," Awasthi said. He said DMIL would export 50 per cent of the total production to meet the growing demand for Matiz in overseas markets, especially in Korea.

The company plans to manufacture about 40,000 to 50,000 cars in year 1999-2000, Awasthi said, adding that monthly sale target for the car was about 6,000 units.

DMIL had tied up with ICICI and Countrywide Auto Financial Services to set up `Daewoo Finance' to facilitate the sale of Matiz, Awasthi said.

In addition to this arrangement, the company had alsoentered into tie-ups with American Express, Bank of America, Citibank, Kotak Mahindra, Standard Chartered Bank and Sundaram Finance.

DMIL had set up a sales network of 102 dealers in 86 cities across the country for Matiz, for which booking would commence on November 12.

As a marketing strategy, DMIL had decided to close the first phase of bookings after accepting 3,000 orders to avoid any long wait period in delivery.

Preference would be given to owners of Cielo, Daewoo's luxury car and women in delivering the cars, Awasthi said.