The sale pinch of Hindustan Motors is immersing to its all time low – 800 units in April2009-February 2010. The sweet diligence of the company Ambassador is worrying a lot that the net share of the company in the car market is as low as 3%. Hence the company is eyeing on launch of Mitsubishi range of cars. Another jolt to the company is the exit of HM’s MD (who came from M&M some six years ago). The situation has not made any hue from the owners – GP Birla-CK Birla group.
There will be more models of Mitsubishi (Lancer Evolution X called as Evo X to quote one) along with new variants of Ambassador. Evo X deems to be a complete sports car, reminding its presence in the fast buster movie Fast & Furious. The company is not bothered about the volume of this fancy car but is more concerned with the contemporary recognition. There should be the brand recognition for Mitsubishi in India.
Evo X will come with 4 doors, 5 seats and a 2.0 lit, 280bhp, 16valve, 4 cylinder petrol engine – all these make it more powerful than the current engines. The salon is a CBU taking along 110% import duty. In addition there is an SUV Outlander and Pajero Sport slated for April and October respectively. The Outlander, to cost Rs20 lakhs, will be sportier with 2.4 lit engine, inspired by the Outlander GT. The company is too happy that all the 100 units sent for display at multiplexes and malls have been sold out.
Put together, the company aims to fetch the sale volume of 6000 units during this FY, an increase of 2000 units from the last year’s 4000 units. Mitsubishi is intended to import the global electric car MiEV in another 3-4 years. Before that infrastructure will be erected especially disposable battery, in place of charging units. Currently Ambassador is manufactured at Uttarpara plant in West Bengal while Mitsubishi ranges are crafted at a plant near Chennai. HM is now on the revival phase, as demand for taxis is increasing after the recession. The company is evolving a strategy to provide uninterrupted supply of cars. By selling 1075 units in March, the company is able to meet the demand by 90%.
While the demand exceed by 1000 units a month, the company is aiming to reach the figure of 1200 cars a month. HM has a niche of volume – 65% of Rs5 lakhs mid-sized sedan are sold as taxis; 20 % of the production goes to the government agencies and the domestic consumers constitute the rest. Similar to other car makers, HM too in the verge of undergoing the transition to BS IVnorms- LPG variant.
Though the car will pose the same old look the engine will be powerful and more efficient. This would mean an increase of price by 15%. Ambassador Grand, the CNG variant is slated for the next year and is expected to hit the roads in large numbers, to become the most sought after tourist car in India.