India's Hindustan Motors to Build Car Plant

10/15/96

Reuters reported that India's Hindustan Motors Ltd has announced the construction of a 3.0 billion rupee car plant near Madras, where it will manufacture Mitsubishi Lancers.

A Hindustan Motors statement said, "Mitsubishi launched this latest model of Lancer in Japan earlier this year. The new model has gained immediate popularity in every country it has been launched."

"Hindustan Motors and Mitsubishi Motors Corp are working closely to set up this facility quickly and launch the new Lancer by end of 1997 or early 1998."

Last week it was reported that Hindustan Motors would begin Lancer manufacture in a GM India facility. The report led to rumors of a joint venture between GM and Mitsubishi, although Mitsubishi denied the story. Hindustan Motors' new plant will produce 8,000 cars in the first year, steadily rising to 30,000 units.

Paul Dever -- The Auto Channel