The Hindu Business Line : HM-Mitsubishi to expand operations

According to a recent press release issued by Mitsubishi Motors Corporation, available on its Web site, the two companies reached an agreement on working together in "driving forward MMC (Mitsubishi Motors Corporation) business strategy in India".

The release said that Hindustan Motors would start producing another model in the Lancer range in January 2006. Hindustan Motors would also add other Mitsubishi models such as Pajero, Outlander and Grandis to its line up of imported built-up models. All these models would be sold through Hindustan Motors' sales network, the release said.

The release added that the two companies had agreed to explore the possibility of Hindustan Motors supplying Mitsubishi with automotive parts made in India. "As part of the company's global sourcing programme, the move would allow MMC to reduce procurement and material costs," the release said.

The Outlander is a crossover vehicle that combines the off-road capabilities of a sports utility vehicle with the urban styling and comfort of a sedan. It has a 2.4 litre engine in overseas markets. The Grandis is a luxury sports utility vehicle and has a 3 litre GDI engine, according to information available on Mitsubishi Motors' Web site.

The strengthening of operations in India forms part of Mitsubishi Motors' strategy for the BRIC countries (Brazil, Russia, India and China), which are seen as promising growth markets, according to the release.

When contacted, a spokesperson of the C.K. Birla group, which owns Hindustan Motors, would only confirm the launch of the next model in the Lancer line up - Lancer Cedia - in January 2006, and not provide details about either the other models to be launched or the possible sourcing of components by Mitsubishi.

The spokesperson said the Lancer Cedia would come with a two-litre engine and be brought in as completely knocked down kits and assembled at Hindustan Motors' Chennai Car Plant, at Tiruvallur. The Lancer Cedia would compete with the likes of Toyota Corolla, the spokesperson said, without providing details on the likely price.

Hindustan Motors was likely to supply the engines for the Lancer Cedia, from its Pithampur plant. The company would continue to make the present Lancer models too after the launch of the Cedia, the spokesperson said.

In 2004, Hindustan Motors sold about 2,200 units of the Lancer and Pajero.

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