In another 3-4 years, Mitsubishi would have made a deep impact in the Indian car market with its compact hatchback. The company has made a firm decision to penetrate the Indian car market which hast he potential of 1.2million annual units. The company has not made any deep impression, even after its presence for a decade, in the small car segment. Mitsubishi is strong in premium SUV and upper mid-sized sedan segment.
The proposed car is already on the design process ready for Thai market and will be on the lines of eco-friendly norms promoted by the Thai government. Thai government’s Board of Investment of Thailand is funding this eco-car project at Rs1100 crore(8 billion Baht). The condition stipulated by the Thai government was that the plant should have the minimum production capacity of 1 lakh annual units. Mitsubishi is the fourth Japanese car maker, after Nissan (who first came out with the eco car called March). This March is Mirca in India.The advantage for the eco-carmakers is that they avail marginal tax reductions for a minimum period of 5 years on condition that they roll out 1 lakh annual units. Compliance of Euro IV norms is one more factor for these eco-car makers.
Mitsubishi is in a tie-up with the Indian Hindustan Motors but the small car would be first rolled down in Thai in 2012. Initially the car will have the proficiency of 1.3 lit petrol sports engine and it will be redesigned to match the Indian conditions. It is to be reminded that the Indian government has given a relaxation in excise duty for cars with less than 4 metres length and 1.2 lit petrol/ 1.5 lit diesel engines. The project was dampened last year due to the financial instability and the earlier project of a small car for the launch in 2011-12 too went awry. Originally, the company had proposed to invest additional amount at the Chennai plant to increase the production from 10000 units to 12000 units per year. India was supposed to have been the platform for the world car in small car segment. Mitsubishi’s current models are Pajero, Outlander, Montero, Lancer and Cedia at the price range of Rs7.75 lakh –Rs38 lakhs.