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Rediff.com  » Business » HM expects Lancer sales to drop 33%

HM expects Lancer sales to drop 33%

By BS Corporate Bureau in Mumbai
February 27, 2004 11:13 IST
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Hindustan Motors has announced that the sales of its premium segment car, Lancer, will decline by 33 per cent this financial year due to competitive pressures.

The car company is expecting to sell 3,000 Lancers in the year ending March 2004, compared with 4,500 sold in the preceding fiscal.

The company recently launched the Lancer 1.8 Invex, a C-plus segment car. The Kolkata-based firm hopes to sell 1,500 units of the new variant in the next 12 months.

G Shyam Sunder, vice-president, Hindustan Motors, said, "We will sell 3,000 Lancers by the end of this March. Sales of this car have suffered due to a number of fresh launches by other companies in the premium segment over the last one year. We hope the newly launched 1.8 Invex model of the car will improve the Lancer sales," said.

The company will continue to sell the 1.5 version of the Lancer, which competes with Hyundai Accent, Honda City, Maruti Esteem, Ford Ikon and Tata Indigo. It is pitting the 1.8 Invex against the other C-plus segment cars: Skoda Octavia, Chevrolet Optra and Toyota Corolla.

Hindustan Motors has discontinued the import of its sports-utility vehicle, the Pajero 3.2. "The SUV will be re-launched in the second half of 2004 after Mitsubishi launches a new variant of the vehicle in Japan," said Shyam Sunder. Hindustan Motors continues to assemble the Pajero 2.8 and sells 15-20 units every month.

Meantime, Hindustan Motors is planning to import completely-built units of new models from the Mitsubishi stable. "We are condidering various options for fresh launches in the C- and D-segments, but nothing has been finalised yet," said Shyam Sunder.
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