Hind Motors' Lancer Plant Commissioned

Hindustan Motors made its entry into the mid-sized car segment as it commissioned its Rs 300 crore Mitsubishi Lancer car plant at Thiruvallur near here, yesterday. The 1500cc, 12 valve, muti-point fuel injection, petrol version and the 2000cc diesel version of Mitsubishi Lancer will be available in the market from October 1.

Priced at Rs 7.34 lakh (ex-showroom, Delhi) the petrol Lancer has been positioned as the most cost-competitive product in the upper end of the mid-size car segment comprising the Open Astra, the Ford Escort and the 1500cc version of the Honda City.

The 2000cc diesel version of the Lancer is being priced about a lakh higher than the petrol version at Rs 8.34 lakh (ex-showroom, Delhi).

 

The Lancer plant was inaugurated by the Tamil Nadu chief minister, M Karunanidhi.

The company hopes to sell about 5000 Lancers during the remaining six months of the current financial year. According to a `ramp up plan prepared in co-ordination with Mitsubishi Motors, the company hopes to step up sales to 12,000 and 18,000 cars during the next two financial years.

"We expect the Lancer and the RTV (rural terrain vehicle) to contribute an additional turnover of Rs 1000 crore during the financial year 1999-2000," executive director of HML, A Sankara Narayanan, told reporters at the plant. The company is on course to record a sales of Rs 1500 crore during the current fiscal (1998-1999). The car will be assembled from CKD kits imported from Japan. It has however already achieved a localisation level of 50 per cent.

The engines and gear-box for the Lancer is being assembled at HML's power plant unit at Pithampur.

With the commissioning of the Lancer plant, the `red line' in the company's red, blue and green product lines has been commissioned, almost three years after the company first signed the technical collaboration agreement with Mitsubishi Motor Corporation, Japan. The Ambassador and the Contessa constitute the blue line, whilee Mitsubishi technology for a smaller car.

"We have no current plans for a small car, but we will not rule out such an option in the future," Sankara Narayanan said. "We are also exploring the possibilities of exporting fully built Lancers. We will look at export of components later," he added. Mitsubishi Motor Corporation's director, Saruhashi said there were `no plans the moment' to pick up a 10 per cent equity stake in HML.