The ambitious deal involved the latter taking over the reins from HMFCL and directly communicating with Mitsubishi Japan. Its set to begin the Japanese carmaker’s second innings in the Indian market. However, the latest update indicating that the deal is now fallen. 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 expecting 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. 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.
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 suggesting 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 convey either by Mitsubishi or HMFCL. If it does, Mitsubishi will be joining the likes of brands such as Chevrolet, Fiat and Opel which fail to make an impression in the Indian car market and had discontinue.
Hey Guy’s If you really like above mentioned article or anything would improvement in it. Let’s us know.