HM cuts Pajero Sport price by Rs 1.87 lakh, following increased localisation

Chennai, October 19, 2012: Hindustan Motors has slashed the price of the Mitsubishi Pajero Sport by Rs 1.87 lakh. The new price for the SUV stands at Rs 22.56 lakh (ex-showroom, Delhi). The Pajero Sport -- previously a CBU -- will now get some basic assembly done at HM’s manufacturing site in Tiruvallur, near Chennai, helping it slide into the CKD excise duty bracket. The price cut, coming at the onset of a festive season on which OEMs are pegging more than just hopes, is thanks to increased localisation of the SUV.

The company is also looking to double the level of localisation by next fiscal, taking it up from the current 14 percent to 30 percent. Initial production of the Pajero Sport will stand at around 400 units per month. Speaking on the occasion, Uttam Bose, managing director, Hindustan Motors, said: “We are pleased to announce the start of production of the Pajero Sport in our Tiruvallur plant and are happy to extend the price benefit to our customers. The Pajero Sport will further consolidate its position in the Indian market. It will look at capturing 20 percent of the premium SUV segment in the country. With the Pajero Sport being locally manufactured, the production numbers is set to increase to over 400 units. The plant also has the capacity to scale up operations, based on market requirements. The manufacturing quality of Pajero Sport CKD is as great as the CBU quality and the dealers are also happy with the end result.”

At present, components like tyres, battery, window glass, seatbelts, lamps, wiper assembly, alloy wheels and headlining are among the ones which are being localised at its Tiruvallur plant.

KARTHIK H