Speaking at the launch of Lancer LX in Kolkata on Friday, its vice-president SC Gupta told reporters that the new models would be priced from Rs 10 lakh onwards and added that the company would invest around Rs 50 crore (Rs 500 million) by way of paying the technical fee to Mitsubishi.

HM had earlier entered into an agreement with the Japanese firm for producing Lancer, which was launched in the mid-segment.

Gupta said that the new model would be manufactured at the Chennai factory of HM.

Talking about Lancer sales, he said that in the current year, the company had sold 2,200 cars. He said that HM had been selling around 125 sports utility vehicle Pajero every month.

Asked why HM was not entering the volume segment, Gupta said the company was not looking at the number game.