Mitsubishi's Indian importer Hindustan Motors has reduced the price of the Pajero Sport SUV to INR2,256,000 (US$41,750) after local assembly began at the automaker's plant in Tiruvallur near Chennai. The price cut was INR187,000.

Uttam Bose, managing director, Hindustan Motors said: "India has in the recent past seen an increased desire for SUVs; Pajero Sport will further consolidate its position in the Indian market [and we hope to] capture 20% of the premium SUV segment in the country.

"With Pajero Sport being locally manufactured, the production numbers [are] set to increase to over 400 units and also the plant has capacity to scale up operations based on market requirements. The manufacturing quality of Pajero Sport CKD is as great as the CBU quality and the dealers are also happy with the end result."

Components including tyres, batteries, glass, seat belts, lamps, wiper assemblies, alloy wheels and headlining are the major items sourced in India for the Tiruvallur-assembled model line. The 'localisation' ratio is currently about 14% but Hindustan hopes to boost this to 30% by next fiscal year.

Hindustan distributes Mitsubishi in India through dealerships in 40 locations with four service outlets. Expansion to 55 points is planned by the end of 2012.