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Old 17th September 2010, 08:10   #1
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Default Now, HM-Mitsubishi to expand their dealership network (22 coming up)

To think, HM-Mitsubishi had a mere 26 dealers up until March 2010. They've inaugurated 14 dealerships since, and plan to bring 22 more by March 2011.

With this, HM-Mitsubishi will have 62 dealerships in total across India.

I guess it would be a good time to revisit their product strategy as well. Get rid of the vintage Lancer & aging Cedia, & bring in the new Lancer. Unlike the current Cedia, a diesel is a must.

An excerpt from the official communication received:
As part of the strategy, HM-Mitsubishi will be significantly enhancing its presence in the country, with increased focus on tier II locations. The company will be inaugurating 22 new dealerships by March 2011. With this, HM-Mitsubishi will have 62 dealerships across India.
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Old 17th September 2010, 08:13   #2
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YOu need a good product line to justify the dealers investment. Look at Volvo - not many people have taken it up because of volumes and product positioning
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Old 17th September 2010, 09:23   #3
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Originally Posted by ajmat View Post
YOu need a good product line to justify the dealers investment.
Exactly. I'm not sure if the Ambassador needs a wider dealer network. Even if Mitsubishi plans newer cars, that still wont cut ice due to their non-existent brand profile here.

What would have been great is if Mitsubishi split from the HM alliance, prepped up their brand image, went solo, and expanded their dealer network. But, thats just a wish since Mitsubishi seems to model itself after the most ineffective government undertakings.
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Old 17th September 2010, 09:49   #4
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Good move by Mitsubishi and HM . I hope their service improves as well. Now they need to get in the new Lancer pronto. Add to that a diesel to their Outlander and I'm sure that car will sell in good numbers. Its a brilliant car really.
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Old 17th September 2010, 10:20   #5
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This sure is a good move, but they need to strengthen their portfolio by adding new products like new Lancer / Cedia with a diesel mill, Outlander diesel etc. Without a good product lineup, I am not sure many will be willing to put down the money to open up a new dealership.

Now that they plan to launch the Lancer EVO, it is high time they did enough brand building exercise to justify the flagship model. Coupled with this brand building (if it ever happens) and new models, I am sure they will be able to get some more footholds in the market.
After all, Lancer still have good brand recall value and snob value in many pockets of Kerala – I think it may be same with at least some other tier-II or tier-III cities in India.

Last edited by theexperthand : 17th September 2010 at 10:24.
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Old 17th September 2010, 11:00   #6
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Its good to expand dealership network but hey, do they have products to sell or service at these dealships. I have seen Asian motors working at its full capacity only on saturdays and Monday and considering the fact that its the only one in Delhi (excel motors in faridabad also caters to Delhi customers but its most of the NCR and south delhi customers). During the weekdays there are very few cars in the center and probably they need 1/3 more numer of cars to work at their full capacity. Also, consider the fact that 90% of lancers in Delhi, does not visit service centers anymore.

Mitsubishi seriously need to reconsider their product models. I would love an EVO 8 shape lancer with 1.6 mivec to compete with city, sx4 and vento, the new lancer (evo X based) with 2.0 Mivec to compete with civic and altis. Diesel again becomes mandatory in either of the models to see the charts rise, the Outlander Sport (again petrol and diesel) at about 15-16 lacs, the outlander (petrol and diesel again) at about 20, pajero sport (without the typical mitsubishi front grille in diesel mode) for about 20lacs and finally the montro for about 30+.

Disclaimer: Daydreaming is not always good!

EDIT: a COLT too would work wonders.

Last edited by gaurav_chopra04 : 17th September 2010 at 11:05.
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Old 17th September 2010, 12:07   #7
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I am very confused with this news.

Are they expecting Evo to be such a success that they are inaugurating so many dealerships ?

I guess some traction of outlander is being used.

Not sure what other products are to be seen from them ?

OR is it their way to increase the sales ? (increase market reach)
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Old 17th September 2010, 23:13   #8
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I think the company i.e HM seems to be reviving its business, they have great cars with the help of Mitsubishi just need is the improvement in branding and service department.

Also The company is the cheapest Car manufacturer in the country available at Rs.30/- approx , with market cap of Rs400/-cr I have a feeling that this company can grown much more from here if they make some management changes.
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