Hindustan Motors rumoured to exit Car business

nkapoor777 · 25th March 2010, 11:23

May be this puts sense in Mitsu heads and makes them more attentive to the India market. I am happy! And sad because I love the Amby. Sigh!

MAS · 25th March 2010, 13:52

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

Abes · 25th March 2010, 14:32

Doesn't Mitsubishi have any say at all in the HM-Mitsubishi JV? Is it justifiable in criticizing HM alone for all the woes?

.anshuman · 25th March 2010, 14:57

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.

gaurav_chopra04 · 25th March 2010, 15:07

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

.

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.

ElantraGT · 25th March 2010, 15:28

This is a good news for Mitsubishi, but its a bad news when at HM for the Amby's angle. Yes guys there are many die hard fans for the old Ambys. A vehicle that can be repaired at any petty shop. Hope Mitsubishi brings in new vehicle line up soon and get a decent market share.

rr_zen · 25th March 2010, 15:33

Curtains down on HM means adieu to the Ambassador. With due respect and no offense meant to Amby lovers/owners, I think its high time when compared to the M800 (that revolutionised the Indian Auto Scene) has made its entry and exit as well.

anupam00 · 25th March 2010, 15:37

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

aargee · 25th March 2010, 15:47

Quote:

Originally Posted by xingamazon

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.

ImmortalZ · 25th March 2010, 16:04

@anupam : Yeaaaah, I'm really looking forward to getting my EVO X serviced at HM's service centers.

AlokSriva · 25th March 2010, 16:09

Quote:

Originally Posted by anupam00

..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!

anupam00 · 25th March 2010, 16:48

Quote:

Originally Posted by AlokSriva

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!

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

4x4addict · 25th March 2010, 17:10

@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.

anupam00 · 25th March 2010, 17:36

Quote:

Originally Posted by 4x4addict

@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.

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

abhi413 · 25th March 2010, 18:00

Quote:

Originally Posted by MotoKris

the first thought is "ah! atleast Mitsubishi can come in directly"

but then, I wouldn't see any new Amby's on the roads!

er...

new Amby's!? Somehow every Amby looks as dated as my Great Grandpa's walking stick, never mind the year of production!

25th March 2010, 11:23	#16
nkapoor777 BHPian Join Date: Nov 2006 Location: New Delhi Posts: 609 Thanked: 147 Times	May be this puts sense in Mitsu heads and makes them more attentive to the India market. I am happy! And sad because I love the Amby. Sigh!
	() Thanks

25th March 2010, 13:52	#17
MAS Senior - BHPian Join Date: Oct 2007 Location: Chennai Posts: 1,941 Thanked: 1,622 Times	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
	() Thanks

25th March 2010, 14:32	#18
Abes BHPian Join Date: Jan 2009 Location: Muscat Posts: 201 Thanked: 60 Times	Doesn't Mitsubishi have any say at all in the HM-Mitsubishi JV? Is it justifiable in criticizing HM alone for all the woes?
	() Thanks

25th March 2010, 14:57	#19
.anshuman Distinguished - BHPian Join Date: Dec 2004 Location: Good-Gaon Posts: 7,763 Thanked: 11,128 Times View My Garage	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.
	() Thanks

25th March 2010, 15:07	#20
gaurav_chopra04 Senior - BHPian Join Date: Oct 2008 Location: New Delhi Posts: 1,264 Thanked: 574 Times View My Garage	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. 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. Last edited by gaurav_chopra04 : 25th March 2010 at 15:10.
	() Thanks

25th March 2010, 15:28	#21
ElantraGT BHPian Join Date: Sep 2009 Location: Chennai Posts: 441 Thanked: 12 Times	This is a good news for Mitsubishi, but its a bad news when at HM for the Amby's angle. Yes guys there are many die hard fans for the old Ambys. A vehicle that can be repaired at any petty shop. Hope Mitsubishi brings in new vehicle line up soon and get a decent market share.
	() Thanks

25th March 2010, 15:33	#22
rr_zen Senior - BHPian Join Date: Sep 2006 Location: Chennai, India Posts: 1,810 Thanked: 423 Times View My Garage	Curtains down on HM means adieu to the Ambassador. With due respect and no offense meant to Amby lovers/owners, I think its high time when compared to the M800 (that revolutionised the Indian Auto Scene) has made its entry and exit as well. Last edited by rr_zen : 25th March 2010 at 15:35.
	() Thanks

25th March 2010, 15:37	#23
anupam00 BHPian Join Date: Apr 2006 Location: NOIDA Posts: 217 Thanked: 490 Times	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
	() Thanks

25th March 2010, 16:04	#25
ImmortalZ Senior - BHPian Join Date: Jan 2008 Location: Trivandrum Posts: 2,192 Thanked: 601 Times View My Garage	@anupam : Yeaaaah, I'm really looking forward to getting my EVO X serviced at HM's service centers.
	() Thanks

25th March 2010, 17:10	#28
4x4addict Distinguished - BHPian Join Date: Nov 2007 Location: Chennai Posts: 4,497 Thanked: 4,650 Times View My Garage	@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.
	() Thanks