Hindustan Motors yesterday unveiled the family sedan model of the Mitsubishi Lancer. At a press conference here, the company disclosed plans to make an entry into India with two variants of the Lancer a 1468 cc petrol version and a 1998 cc diesel version. The Lancer is slated to be launched in July.
The company is yet to decide on the pricing of the two models. However, sources said that the cars would be positioned in the Rs 7 lakh plus range, competing with the Opel Astra and the Honda City. HM and Mitsubishi are also working on other Lancer variants, including a hatchback and the Mitsubishi utility vehicle Verico, as potential models to expand Mitsubishis product portfolio in the country.
This (the Lancer) is just the beginning of a long-term relationship between Mitsubishi and us, and we will be launching more products from the Mitsubishi stable, said R Santhanam, executive vice president of Hindustan Motors.
Meanwhile, the two partners are yet to firm up the time schedule for converting the existing technical alliance into a joint venture.
Santhanam told Business Standard: We had received government approval on the basis of Mitsubishi Motors picking up 10 per cent equity in the project, and both partners are keen to forge this alliance. However, when and how this will happen is yet to be finalised.
The two entry-level models will have a five-speed manual all synchronised transmission system with a four cylinder engine. However, while the petrol Lancer gives 93 horse power on the back of a multi-point electronic fuel injection system, the diesel version generates 68 horse power.
The Lancer will be produced at Hindustan Motors newly built Rs 320 crore factory at Tiruvallur near Chennai. The factory, which is slated to begin commercial production by June 1998, will have an initial manufacturing capacity of 5000 cars in the first year.
Hindustan Motors is setting up a separate dealership network for its Mitsubishi project, under which there will initially be 35 dealers in all major cities selling the Lancer.
The company hopes to position Lancer as an all-terrain vehicle, focusing on the fact that it won numerous world rallies in 1996.
