NEW DELHI, India - Korea's Daewoo Motor Co. announced here last week that it will build a second car at its joint production venture in India and is considering a plan to produce engine and transmission components.

Daewoo said it will begin assembling the 1.5-liter Cielo subcompact from complete knockdown kits at DCM-Daewoo in the second half of 1995 along with the previously announced Racer.

Company officials projected sales of 60,000 Cielos in 1996, rising to 100,000 a year by 1997, and a retail price equivalent to $15,000 to $20,000.

Local content will begin at about 30 percent, Daewoo said.

It was not immediately clear last week whether the more modern Cielo will displace some Racer output. When Daewoo announced the DCM venture in June, it set an assembly target for the Racer of 25,000 units in the first year, rising to 50,000.

The four-door notchback Cielo is a heavily face-lifted LeMans; the Racer is a hatchback variant.

Daewoo, which holds a 51 percent stake, will manage it and invest some $200 million.

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