Mitsubishi Lancers Made at GM India Facilities

10/11/96

Kyodo reported that Mitsubishi's Indian partner, Hindustan Motors Ltd, will manufacture Mitsubishi's Lancer passenger cars at General Motors India Ltd. facilities. Hindustan Motors owns a 50 percent share of GM India.

The venture was originally reported as a cooperation between Mitsubishi and General Motors, but Reuters reported that Mitsubishi has denied any such alliance. A Mitsubishi spokesman responded to the erroneous story by saying, "the story is not correct. Simply, Hindustan will utilize GM India, its 50-50 venture with GM, to start assembling Mitsubishi's Lancer in 1998. It is not an alliance between Mitsubishi and GM, it's between Hindustan and GM India."

Last Fall, Mitsubishi agreed to let Hindustan Motors make the Lancers and forged a deal to supply the Indian firm with technical assistance toward that end. Hindustan Motors will produce the Lancers at a GM India plant starting in early 1998 at a rate of 10,000 vehicles per year. Hindustan Motors has said it will move the assembly of the Lancers to a new plant within the next two or three years, after it is built. The Lancers will be sold in India by Hindustan with Mitsubishi's badge. Mitsubishi has no capital investment in Hindustan or GM India.

Paul Dever -- The Auto Channel