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Bangalore , Oct. 8

AFTER steering round the market for five years with the reputation of being a `status car', Mitsubishi Lancer is shifting gears to position itself as a `performance' car. The move comes in the wake of the intensifying competition in the automobile market, which is slated for a slew of new models and variants of the leading brands in the next 12 to 18 months.

As part of its long-term strategy to consolidate its position, Hindustan Motors (HM) has embarked upon expanding its dealer network in unrepresented areas in the next three to four months. The company also plans to launch new variants in the next 12 to 14 months while a new product itself is on the anvil to endure the legacy of Lancer in the Indian market.

Addressing a press conference after inaugurating the second dealer outlet here on Wednesday, Mr Shyam Sundar, Vice-President, HM, said that Lancer has ruled out any price reduction for its cars to take on the competition. Lancer has carved out a 20 per cent market share and hopes to increase it to 30 per cent with the current strategies of network expansion and introduction of new variants, he said.

With localisation of 70 per cent and reduction in the spare parts costs, Mitusbishi Lancer continued to give value for money, Mr Shyam Sundar said.

Later talking to Business Line, Mr Shyam Sundar said that the new product, which the company was planning to launch, would be built on a totally new platform.

With India emerging as a major market for automobiles, HM has also planned to introduce a new variant of the Sports Utility Vehicle, Mitsubishi Pajero.

But it would take some time, as the new model designed for 2004 would have to undergo homologation. Since it undertook the assembly of Pajero 2.8 litre engine capacity SUV less than two years ago, HM has been selling 18 to 20 vehicles per month.

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