Mitsubishi Could See Direct Investment in India due to Nissan Takeover

India-bound Mitsubishi Pajero Sport 1

Mitsubishi could see direct investment in India due to Nissan buyout as platform and componet sharing seems attractive with Renault-Nissan Alliance

The Indian distribution of Mitsubishi was ensured with the formation of production plant in Chennai, a technical collaboration between the Mitsubishi Motors Corporation Japan and Hindustan Motors Limited, in 1998. But since April 2014, Hindustan Motor Finance Corporation Ltd (HMFCL) operates as an independent company who now manufactures and markets the Mitsubishi brand products in India.

Mitsubishi is one of the long-staying global automakers in the Indian market but it could not replicate its former success in the last few years. Perhaps the lack of a definitive product portfolio can be considered as the reason for the downfall. But everything could change with the direct investment locally due to the new association with Nissan according to AutocarIndia.

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Mitsubishi Montero relaunched in India 1

Nissan announced the buying out of 34 percent stakes in Mitsubishi not so long ago and will be paying 2.2 billion US dollars (around Rs. 14,600 crore) to take control of the its Japanese small car rival. The deal heralded in May will only further consolidate the alliance between Renault and Nissan as the technology and market strategies can be shared.

With the sixth-largest manufacturer in Japan’s help, platform and component sharing, utilising same manufacturing lines and mutual investments can be of high certainty. Mitsubishi could plan a big product offensive as the Renault Nissan’s plant in Oragadam, Tamil Nadu can be used. With heavy levels of localisation, Mitsubishi could be running the show in premium SUV segments as well as entry-level volume spaces in the future.

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Renault-Nissan Alliance’s global CMF-A platform of Kwid will give a strong base considering the architecture sharing. With the story that the new generation Micra revealed at the Paris Motor Show won’t be entering Indian market, the void between Kwid and Duster can be filled by a compact car from Mitsubishi. But as of now everything is purely down to speculations.
Source: AutocarIndia