Hindustan Motors, the flagship company of the CK Birla Group, has decided to focus on increasing its market share in the premium Sports Utility Vehicle (SUV) segment. Officials from the company have communicated the firm's strong desire to sell around 2500 units of the Mitsubishi Pajero in the financial year 2013-2014. Ashish Kaul, the Head for Sales and Channel Expansion at Hindustan Motors, described the firm's estimated performance of the Mitsubishi Pajero.
"Last year we sold about 1,800 units. This year we are planning to sell about 2,500 units. I would say since its launch (in 2002), we should have sold about 60,000 units", he said. The technical collaboration between Hindustan Motors and Mitsubishi Motors Corporation was established in 1998. Currently, the models that are available for sale in the market are Cedia, Outlander and Montero.
Kaul further added that Hindustan Motors is also working on the introduction of two new models by the end of the current fiscal. Reports suggest that the auto maker plans to launch new versions of Outlander and Montero SUVs, which are powered by diesel engines. According to company claims, Mitsubishi is the second most successful car in its segment after the Toyota Fortuner.
Rumours had surfaced regarding the pricing of Mitsubishi Pajero getting affected by the regularly diminishing value of rupee. Also, fall in the value of rupee has led to price rise and has also increased the cost pressure on car makers. As a result of this, auto companies have been forced to raise the rates of their vehicles in order to maintain profit margins, thereby transferring the burden on shoulders of consumers.
Ashish Kaul, in an interview, confirmed the speculations about the pricing of the Mitsubishi Pajero. He did not comment on the how much of an increase there will be in the car's price. However, he said, "Yes. It is affecting us very badly. As of now, we are offering it (Pajero) at an introductory price of Rs. 23.60 lakh (ex-showroom Chennai) till August 31. Definitely, we will increase it next month."
Kaul and other officials were present at an event in Chennai to showcase the 'Anniversary Edition' of Pajero Sport SUV. The 'Anniversary Edition' of the Mitsubishi Pajero SUV boasts of features like navigation system, audio system, coloured bumpers and rear view camera. Also, Hindustan Motors is providing potential buyers some finance schemes on the purchase of their models.
It must be noted that the condition of Indian car market has not been favourable in the recent past due to the slowdown in demand and financial crisis. However, the SUV segment is one of the few exceptional sections of the market that has shown promising signs. Industry experts feel that Hindustan Motors might be able to clock its set target for the Mitsubishi Pajero Sport, given the kind of scope currently prevailing.
