The Hindu Business Line : Mitsubishi plans bigger line-up in next 2 years

Expanding presence
Mitsubishi plans to locally manufacture Outlander.
Wants to launch more niche segment products.
Targeting sales of 10,000 units by 2010.

Mr Osamu Masuko

S. Muralidhar

Recently in Geneva Mitsubishi Motors Corporation, the Japanese collaborator of Hindustan Motors, is looking to expand its presence in the Indian market with a bigger line up of vehicles in the next two years.

The company, which has had a manufacturing collaboration with HM since 1998, and which currently has three models in the market, is also targeting to triple its sales during the next two years from the present 3,000-odd vehicles to about 10,000 units by 2010.

Amongst the first new products to be launched in the market here will be the Mitsubishi Outlander, a crossover sports utility vehicle (SUV) like the Honda CR-V and the Chevrolet Captiva.

Currently, the Mistubishi Lancer Cedia sedan, and the Pajero and Montero SUVs are sold by HM through its dealerships. One of the other products that Mitsubishi executives have spoken about for a possible India debut is the i-MiEV (Mitsubishi Innovative Electric Vehicle).

Outlander making

Speaking to Business Line at the sidelines of the Geneva Motor Show, Mr Osamu Masuko, President, Mitsubishi Motor Corporation, said that the company now plans to locally manufacture the Outlander. Earlier, Mitsubishi was considering importing the SUV into India. The Outlander sports a sticker price of about $30,000 in markets like the US.

Current plans include a semi-knocked down (SKD) kit assembly and an aggressive localisation of parts for the Outlander. The vehicle is likely to be assembled at HM’s plant near Chennai and the resultant cost savings from localisation is expected to help the company keep the costs of assembling the SUV low, eventually enabling a more competitive pricing strategy.

Talking about the company’s relationship with HM, Mr Masuko said that the Japanese company is satisfied with its current standing in the Indian market and that it has no plans to either takeover the Indian operations or to set up a different subsidiary.

No small car plan

Mr Masuko also mentioned that Mitsubishi is keen on exploring a larger presence in the Indian market, including a wider product offering. “However, Mitsubishi has no plans to enter the highly competitive small car segment in the near future. Instead, we will want to launch more niche segment products,” Mr Masuko said.

In the past, the Japanese company has been beleaguered by financial problems, and its India strategy has not been as aggressive as the other Japanese automobile companies. Mr Masuko said that Mitsubishi will increase its focus on the Indian market and is targeting sales of 10,000 units by 2010.

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