HM hopes to double Lancer sales

Hindustan Motors (HM) expects to double sales of the Mitsubishi Lancer from 3,000 units in the 2004-05 fiscal to 6,000 units in the next financial year.

HM aims to do this through a series of marketing efforts like introducing a new entry variant of the car, Lancer LX, at Rs 6.93 lakh (ex-showroom).

Other initiatives include slashing prices of Lancer spares by 56.4 per cent, in line with the increased localisation in the car. Localisation in Lancer variants has gone up from 65 per cent in the last year to 72 per cent this year.

"With the fully loaded Lancer LX which provides a new entry price point for the car and the reduction in the prices of spares we hope to increase sales from 3000 units this year to 6000 in the 2005-06 fiscal," said SC Gupta, vice president and head of the Lancer business unit at Hindustan Motors.

Gupta also denied market rumours about a possible buyout of its Kolkata plant by Tata Motors.

As per the company's 'one country, one price' newly launched Lancer LX will retail at the same price i.e Rs 6.93 lakh in HM showrooms across India (the price includes central sales tax, local sales tax, transporattion, handling and insurance charges but does not include surcharges of local sales tax and octroi.)

HM, which has been manufacturing the Lancer in India since 1998, also sells the Mitsubishi Pajero in the country.

HM has informed the Bombay Stock Exchange that it will launch yet another Mitsubishi car in the next financial year. HM manufactures the Mitsubishi cars in its 12,000 unit Thiruvallur plant near Chennai.