India’s oldest car maker, Hindustan Motors, will invest a “significant” amount over the next three years to build up production capacity for auto components, a top company official told a news agency on Thursday.
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“We are currently tying up the funding,” the automaker’s managing director Ravi Santhanam told Reuters at a news conference to launch Mitsubishi’s Montero SUV. Hindustan has collaborated with Mitsubishi since 1998 for its Lancer sedan and Pajero SUV.
Hindustan Motors also has an auto components subsidiary which makes automotive castings, forgings and stamping, the report noted.
“Over a period of time, sales from auto components could be as high as 30-40%,” Santhanam told Reuters.
In July, a newspaper report said Hindustan Motors planned to launch Mitsubishi’s small-car model iCar in India by the end of 2007 but Santhanam reportedly said that news had no basis.
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By GlobalDataReuters noted that the Indian passenger vehicle market is forecast to nearly double to 2m units in annual sales by 2010 with small cars taking up over two-thirds of sales. A tax cut earlier this year on small cars is encouraging more small car launches.
