Team-BHP - Hindustan Motors rumoured to exit Car business

Like many of us, I feel this is the best thing to happen for Mitsubishi in India. Mitsubishi car are good, but due to the bad (or zero) marketing efforts, they still remain Alien to Indian market. I guess Mitsu was completely blinded by HM and did not really bother to pursue sales.

Meanwhile, the ET link had a funny comparison

Quote
Sales of the Ambassador and Lancer have been on a weak trend, while their counterparts from other companies have seen rising demand. While the Ambassador sells only 850 units a month countrywide, sales of comparable models, such as the Honda City, average 5,000 units every month. On an overall basis also, HM doesn’t fare well. In the April-February period, sales of the Ambassador, the Lancer (product of HM-Mitsubishi joint venture) and the Cedia, at 7,976 units, is way lower compared to peers such as the Maruti-Suzuki (Dzire and SX4) at 88,862 units.
Unquote

Ambassador compared to Honda City:deadhorse:uncontrol

I feel if HM quits automotive business Mitsubishi might consider the same. Mitsubishi sales are not very good in India, so in case their local partner exits they will have to manage every thing their self and that would mean pumping more money. Plus all of their exisiting cars are close to end of lifecycle.

Other point of view. The new Lancer has been snapped testing and told to be close to production, Evo is planned and according to Overdrive magazine they are also planning a new SUV based on Pick up truck platform to rival Fortuner. With all these cars close to launch they might stay.

hmmm..seems more like a rumour, HM-Mitsubishi are still working hand in hand to figure out more ways to up their sales.

The Mitsubishi EVO should be here by May 2010 and the Pajero Sport by July- August 2010 (both are almost confirmed news). HM-Mitsubishi had recently sent their officials as well as main engineers to Japan on training for the EVO. Sources confirm that although the new lancer isnt coming sometime soon, the EVO and the pajero certainly are on their way. The EVO will be price above 30lac:Frustrati.

However, if this rumour comes out to be true, it will be difficult for Mitsubishi to manage its operations in India as it is the HM doing A to Z for Mitsubishi.

As per my contacts in the HM Network,

This is nothing but rumors & only rumors.

I would also like to specify one more fact that is Commitment to the Indian Market is already shown by HM-Mitsubishi by bring in New Outlander & also in the pipeline as known there is New EVO & Pajero Sports.

I think now Mitsubishi & HM would hit the market back with a bang as you all know that EVO is an ultimate vehicle & Mitsubishi manufacturer very well build cars we all know,

Media rumors should not be trusted,

Thanks & Regards
Anupam00
:thumbs up

Quote:

Originally Posted by xingamazon (Post 1801960)

Well that looks good on paper, but belive me Mitsubishi buying HM would mean doom for those guys, imagine this a MNC taking over company based mainly out of West Bengal, man the politics in this state will make sure they dont start any operations whatsoever, but the Communist party will make sure the salaries are not stopped for the employees. Thats the worst combination one MNC would like to have as a starter.

To that I would ask only one question, do you want to work & earn money or spend the rest of the life holding flag? This is nothing new because, a similar incident had happened when Caterpillar successfully took over one of Birla's plant in Hosur.

Quote:

Originally Posted by anupam00 (Post 1802758)

..also like to specify one more fact that is Commitment to the Indian Market is already shown by HM-Mitsubishi by bring in New Outlander & also in the pipeline as known there is New EVO & Pajero Sports.

Bringing in products as CBU/CKD is not a sign of commitment. Setting up an assembly line is :)

Edit - neither is dishing out decade old products a sign of commitment. Only reflects on what the manufacturer thinks of the market!

Quote:

Originally Posted by AlokSriva (Post 1802841)

Well Bringing the products as CBU/CKD - is a manufacturers choice - which he does after a market survrey & various other parameters,the manufacturer might think that in case he gets more numbers that he might set up in his production line just FYI- HM does have a Production line -but coming back again to the point that whether they bring CBU/CKD is again - manufacturers choice which is based on various parameter- at the end of the day - manufacturer is also there to make money in the best possible way he thinks.

I agree to the fact that in case local assembling,production & R&D is performed than the cost of the product can be lowered & so more customers - but again that as well as requires cost. (It's like which one came before -hen or egg).

Old product if selling ok might as well bring money to the company,but yes now they are bringing in new product- EVO & Outlander as one example.

But the thread that Hindustan Motors rumoured to exit Car business is just a rumour & nothing else.

Thanks & Regards
Anupam00

@anupam00?

how long do you think people are going to buy ambys? I know there are many people in the forum who love amby's but if they every buy one, they are more likely to get a good used one and restore it rather than buy a brand new one from the showroom.

you don't need read a news article to see the fate of HM. You think EVO & New outlander will turn the tide for HM? EVO is a niche car which will be sold to enthusiasts who can afford the price tag but HM cannot survive on selling a few EVOs and over priced Pajero SUVs. They need a bread and butter sedan/UV that sells in large numbers. The pajero sport will be priced somewhat in the ball park of the Fortuner. However, I feel that in India people will still prefer the Toyota badge over the Mitsu badge given HM's abysmal performance here.

It is okay to be a fan of a brand but you have to accept market realities as well rather than succumb to the ostrich syndrome.

Quote:

Originally Posted by 4x4addict (Post 1803000)

I totally agree to market realities,

In order to sell in number a company needs to be good in all the department.

Whether EVO & Outlander alone can turn the fate or not that according to me is a difficult task but time would tell.
I agree they need bread & butter – also the fact that both HM & MITSUBISHI need to put plan in place & implementation as well- May be look for Fiat case as an recent example.

I am a fan of the product that is explicit but at the same time I really on Facts & according to my network I am just confirming that the Rumor of HM quiting is just a rumor & nothing else.

Rest is all your discreation,

Thanks & Regards
Anupam