Mitsubishi keen on picking stake in Hindustan Motors

Mitsubishi Motors Corporation, one of Japan's largest automakers, is showing keen interest in having equity participation in the loss-making auto company Hindustan Motors, which is also its current technical partner.

The two companies, which have maintained a relatively low-profile in the Indian automotive segment, currently share a technical collaboration through the Chennai Car Plant (CCP) which makes two sedans and two sports utility vehicles for Mitsubishi.

According to sources attached to Mitsubishi, officials from the Japanese-headquartered company will be approaching promoters of Hindustan Motors for negotiations in due course. The company is expecting a positive rejoinder from the HM, which is run by the C K Birla Group.

Mitsubishi had forged a technical alliance with Hindustan Motors, makers of the iconic Ambassador car, twelve years ago. However, products of the two companies have remained separate over the years with the CCP making only Mitsubishi products.