| The company, which currently produces its own old warhorse Ambassador and Mitsubishi Motor's Lancer and Pajero, currently has 60 per cent idle capacity at its Chennai plant which can roll out 12,000 cars a year. |
| Hindustan Motors' vice-president G Shyamsundar said there was a move to produce a premium mid-sized car in 2004-05, but refused to give details. |
| The company today launched an 1.8 litre model of the Lancer, on the hope that it will spruce up volumes of this mid-sized vehicle. |
| The sales of Lancer dropped 40 per cent to 2,100 units during the April-January 2003-04 period. The new model is priced Rs 8.95 lakh (ex-showroom, Delhi). The Lancer, however, will also continue to sell with the current 1.5 litre engine. |
| As a part of the long-term strategy, the company which was India's largest car maker before the entry of Maruti (Suzuki) in the 1980s has decided to play the role of a contract manufacturer for the bigger companies which are looking at deriving cost benefits out of outsourcing to local firms. |
| Ford Motors and General Motors have already started outsourcing engine assembling for their car models in India to Hind Motors' Pithampur plant. |
| A team from local car-maker Tata Motors also visited the plant recently to explore opportunities for outsourcing engines and transmissions. But no decision has been taken as yet. |
| Shyamsundar said that the proposed mid-size car was at a drawing stage. A new version of the Pajero was also in the pipeline. |
Top Section
Explore Business Standard