Mitsubishi to hike car prices from April 1

Mitsubishi Motors, which assembles its cars in Chennai through a joint venture with Hindustan Motors, plans to hike prices of its models by 4-5 per cent from April 1.

This is a result of imported kits getting more expensive thanks to the escalating yen. Since localisation levels in Mitsubishi models are still not very high, there is a considerable forex outgo for both imported and assembled cars.

“In the last year and a half, the yen has appreciated 40 per cent against the rupee. This, combined with the appreciation of the US dollar, has come as a double whammy for us,” Mr Y.V.S. Vijay Kumar, Executive Vice- President, Hindustan Motors, told Business Line on the sidelines of a press conference here on Wednesday for the Montero launch.

The company’s high end sports-utility vehicles (SUVs) Outlander and Pajero which are priced at Rs 21-22 lakh will become costlier by Rs 1 lakh. The high-end Montero SUV, which is directly imported and sports a price tag of Rs 42 lakh, could see a steeper hike because duty levies are higher.

Mitsubishi’s midsize sedans Cedia with a price tag of Rs 10.29 lakh and Lancer with a price tag of Rs 8.20 lakh will become costlier by Rs 50,000 and Rs 40,000 respectively. The Lancer has 60 per cent local content while it is 25 per cent in the case of the Cedia, 30 per cent for the Pajero and 10 per cent in the case of the Outlander.

Mr Ravi Santhanam, Managing Director, Hindustan Motors, said the company would consider assembling the Montero at its Chennai plant. “Building the Outlander in India gave us tremendous exposure in assembling a premium range of SUVs. We hope to start assembling the Montero in the mid term,” he said.

The Chennai plant, which assembles the Lancer, Cedia, Outlander and Pajero, can make 12,000 units annually. HM sells nearly 5,000 Mitsubishi models annually.

Source: Hindu Business Line