15 October, 1998, Tokyo. Mitsubishi Motors Corporation announces the launch in October of 1.5-liter gasoline and 2.0-liter diesel LANCER passenger car models produced at Hindustan Motors Limited (HML) in Calcutta, India.

Under a contract signed in September 1995, the two companies agreed that Mitsubishi Motors would supply HML with technical assistance relating to the production of a gasoline engine LANCER model, that the LANCER would be produced at HML's Chennai factory and would be sold through HML sales network in India.

The Chennai factory has an annual production capacity of 30,000 units. Plans call for the production and sales of 4,700 LANCER's in 1998, with a view to increasing this to 20,000 units a year in the future. Local content at the start of production is around 40%, with plans to increase this in stages to approximately 75%.

HML has played a pioneering role in the Indian automobile industry and has established a well-developed sales and service network throughout the country. The company also produces construction machinery in a joint-venture with Caterpillar Inc. of the United States, as well as heavy-duty transmissions in a joint-venture with GM Allison of the United States.

HML-produced LANCER sub-compact

HML Chennai factory

In another venture in India, in March 1997 Mitsubishi Motors signed an agreement with Mahindra & Mahindra Ltd. (Bombay) under which Mitsubishi Motors and South Africa Motor Corp. Ltd. (SAMCOR, Pretoria) would collaborate in supplying technical assistance relating to the manufacture of car bodies for the Mitsubishi L300 light-commercial vehicle (DELICA in Japan). Production and sales of the L300 started in November 1997.

The start of production and sales of the LANCER at HML marks Mitsubishi Motors' entry into the passenger car market in India, where the company had already established itself in the commercial vehicle business.

(For information purposes only)

Hindustan Motors Limited outline: