Financial Daily from THE HINDU group of publications Tuesday, Jun 22, 2004 |
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Corporate
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Announcements Marketing - Strategy HM offers 3-year warranty on Lancers Our Bureau
Hyderabad , June 21 HINDUSTAN Motors has announced a three-year and 50,000 km extended warranty offer for its Lancer cars. It expects to increase its sales by 20 per cent this year with a slew of launches. Addressing a press conference here today, the Chief General Manager of Hindustan Motors and head of the Chennai plant, Mr S.C. Gupta, said: "Based on customer feedback we have brought in several changes in the Lancer and made it more user-friendly and comfortable. The three-year warranty offer is aimed at building customer loyalty and also assure them about the reliability and the confidence we have in the Lancer range." "The independent segment-wise research on maintenance cost of vehicles indicates that on an average a mid-size premium car buyer spends about Rs 36,000 over three years on maintaining his car. With the Lancer Freedom initiative, the company enables its customers to enjoy this superior product offering while saving on these costs," Mr Gupta said.Hindustan Motors is aiming to increase its sales from 4,000 cars to 5,000 next year, an increase of about 20 per cent over the last year based on the launch of three new models, including the Invex range. While declining to comment further on the proposed models for the Indian market, Mr Gupta said that HM was in the process of working on new models. "There was no model fatigue with regard to the Lancer and the sedan is amongst the latest offered anywhere in the world. Unlike other counterparts, we have still maintained the indigenisation level at about 67 per cent, as Mitsubishi is very stringent on the quality of cars. Even now, the steel used for the car is imported," he said. With regard to the Pajeros, "From about 150 sold last year, we expect to market about 300 to 350 of these high-end SUVs in India. We have arrangement for export of Lancers from neighbouring countries such as Bangladesh, Sri Lanka and Brunei. Though the export volumes are small now, with the launch of these new models, we could possibly expand the number this year," Mr Gupta said. Announcing its new expanded dealership here, Mr Gupta said, "the company has three dealers in the State and about 42 in the country. Apart from the existing 42 Mitsubishi dealers, we are in the process of expanding this network to about 50 by the year-end."
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