Mitsubishi draws up fresh comeback plan in India

By 2016, Mitsubishi may have five models in its showrooms in India. This will include two existing SUVs from its current portfolio. A new SUV for emerging markets, which is under development, could also be introduced here, though there is no official comment on it yet. What is official is that Mitsubishi will add an automatic transmission version to its only model currently available in India – the Pajero Sport – by October this year.

In an interview with Autocar Professional, Ken Horinouchi, Mitsubishi’s executive officer and corporate general manager, Asia and ASEAN office, revealed that the company, as part of its global ‘New Stage 2016’ mid-term plan, is working on a new business strategy for India that will see Mitsubishi dealers in India selling “around five models” by 2016. The cars will, at least initially, be imported from ASEAN markets, although assembly at the Hindustan Motors’ Chennai facility is likely at a later stage. “We are aiming to import some cars from ASEAN countries to India,” says Horinouchi.

While exact details and launch dates weren’t confirmed, one of the cars that is a strong contender for launch in India is the Mitsubishi Mirage hatchback. While the ‘Mirage’ name was previously used for the Mitsubishi Lancer sedan and coupé in certain markets, it now refers to the company’s new compact hatchback. A rival to the likes of the Maruti Celerio and Hyundai i10, the Mirage is powered by a 77bhp, 1.2-litre, three-cylinder petrol engine in the ASEAN markets in which it is already on sale. Apart from a manual gearbox, it also gets a CVT automatic option. 

What could follow the Mirage is its sedan version, the Mitsubishi Attrage. This car uses the same powertrain as the hatchback, and although it’s quite compact, the length of the ASEAN model is just a shade over 4.2 metres long. This means that it doesn’t qualify for India’s small car tax benefits, and so it will be interesting to see if Mitsubishi finds a way to shave off the excess 245mm.

However, Mitsubishi acknowledges that its SUVs are what it is best known for, and so they will feature prominently in its new model strategy. “Market-wise, emerging markets, including India, are our first priority. Product-wise, we are going to put more SUVs in such markets,” says Horinouchi. “Our policy is SUV, but we must make some kind of a link between the two concepts (SUV and compact cars)”, he adds.

 One of the big contenders for launch here could be the new-generation Mitsubishi Outlander. However, a big hurdle for the company is the import duty. While dealers are demanding a diesel version of the Outlander SUV, the cost is proving to be too high as its sales volume may not be viable for the company to assemble it in India. Mitsubishi says it is also studying the compact SUV segment in India.

Mitsubishi, which started its India operations in 1998 through a partnership with Hindustan Motors, says it will invest resources to strengthen its marketing and sales activities together with the Indian partner. The carmaker says that “some financial restrictions” led to a sharp drop in its business performance in India, but the company wants to “recover the market presence quickly”. Uttam Bose, MD of Hindustan Motors, says that “on a yearly basis, a growth rate of 20-25 percent” is being targeted by HM-Mitsubishi which sold 2,500 units of the Pajero Sport in 2013. This will play a key role in Mitsubishi’s plan of getting more than half of the company’s total sales from emerging markets by 2016.

Photograph: Mitsubishi’s Ken Horinouchi and HM’s Uttam Bose.