HomeCar NewsMitsubishi Likely To Discontinue India Operations Officially

Mitsubishi Likely To Discontinue India Operations Officially

Mitsubishi Outlander Launch In 2018
Mitsubishi Outlander Launch In 2018. Image – AVS India.

The Jamshedpur-based firm was expected to invest over Rs 500 crore into the Indian arm of Mitsubishi

About a year ago, reports had surfaced online about the resurrection of Mitsubishi in India after the Japanese went absent from the Indian market back in January 2020. Mitsubishi and its Indian partner Hindustan Motor Finance Corporation Limited (HMFCL) were in talks with a Jamshedpur-based component maker for a possible tie-up.

The ambitious deal involved the latter taking over the reins from HMFCL and directly communicating with Mitsubishi Japan. It was set to begin the Japanese carmaker’s second innings in the Indian market. However, the latest update indicates that the deal has now fallen through and Mitsubishi’s future is left on the lurch once again.

Details of the failed discussion

The tie-up with the Jamshedpur-based automotive firm was expected to infuse fresh investment into the system. This would have also led to installation of a new assembly line in the industrial town in Jharkhand. Now, with the talks of partnership dissolved, HMFCL will either have to find a new partner or give up its business altogether. With the company facing a cash crunch, it is on the verge of being shut down for good.

HMFCL has only six employees on its payroll and currently has no functional retail outlets as all eleven showrooms are inactive. Some former Mitsubishi dealerships have claimed that HMFCL hasn’t yet refunded their dealer deposit.

Mitsubishi Outlander Launch In 2018
Mitsubishi Outlander Launch In 2018. Image – AVS India.

This has led to a couple of dealers contemplating possible legal action against HMFCL. Dealers also complained about a dearth of spare parts as HMFCL doesn’t have enough funds to import them from Japan.

No Confirmation of Official India Exit

On the other hand, a company spokesperson has denied all these reports and suggested that new BS6 compliant models are under development at Mitsubishi Motors. He further added that development of these models has been delayed due to the ongoing pandemic and that dealerships are ready to commence Mitsubishi-HMFCL business in India soon.

The last car retailed by Mitsubishi in India was Pajero Sport in January 2020. Between April 2019 and January 2020, the brand only sold about 30 cars. Whereas in between April 2018 and January 2019, it retailed just 164 cars. Currently, the Japanese carmaker has a dealer network in 20 locations to take care of the after-sales needs of Mitsubishi consumers.

All these factors point towards the apparent exit of Mitsubishi from India although no official word has been conveyed either by Mitsubishi or HMFCL. If it does, Mitsubishi will be joining the likes of brands such as Chevrolet, Fiat and Opel which failed to make an impression in the Indian car market and had to discontinue.


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