Mitsubishi may launch its eco car India

Mitsubishi Motors, Japan based leading car maker, is looking to acquire a significant market share in the Indian small car segment, as it is looking to launch a compact small hatchback in coming two-three years.

Though the company had started its operations in India a decade back, the absence of a compact car has affected its market share. At present, Mitsubishi is present only in premium SUV (sport utility vehicle) and upper mid-size sedan segment.

Mitsubishi has a tie-up with the C K Birla Group-promoted Hindustan Motors in India. The company is targeting to launch the small car in Thailand in the first half of 2012. The new small car from this Japanese car maker will be manufactured at a completely new platform and powered with a 1.3 liter engine.

The company is also planning to invest in its Chennai facility to increase the annual capacity of the plant to 1 lakh units from existing 12,000 units annually. Mitsubishi currently, sells the Pajero, Outlander, Montero, Lancer and Cedia in the price range of Rs 7.75 lakh to Rs 38 lakh.

The Eco-car project offers a significant corporate tax exemptions to car makers for at least five years, provided the production reaches 1,00,000 units per year within the five years. The new Eco-car will be compatible to the Euro-IV emission norms.