MLR Motors promoted by Hyundai Motor India’s former president B V R Subbu has said that it’s on its way to showcase a prototype of its small car at the 2010 New Delhi auto show. MLR Motors acquired the defunct Daewoo facility in Andhra Pradhesh and said it would to launch two compact diesel cars of 850-900 cc and 1,500 cc in 2009. But the economic slowdown and the infrastructure problem is delaying the project. “We are in discussions with banks and financial institutions and private equity players to close funding for the first phase of the car project, which entails investment of about Rs 1,250 crore,” Mr Rao said. “Typically, development of a car takes five-six years and MLR has made significant progress since we announced our intention to set up a car manufacturing base” Managing Director of MLR Motors Ltd, Mr M. Lokeswara Rao, said . “The designs have been firmed up after restyling; work on the engines is underway in Europe and a prototype will be ready soon,” he added. MLR motors plans to launch petrol and diesel variants of hatchback.