Mitsubishi Motors which is in joint venture with the Hindustan Motors for the marketing and distribution of its models has announced a price hike across its car models. The prices will be increased by 4-5 percent starting from April.
The price hike is said to be the result of increasing price of the imported kits because of the rising value of Yen. As the Mitsubishi models in India are not completely localised majority of the components are imported.
According to Y.V.S. Vijay Kumar (Executive Vice President, Hindustan Motors), "In the last year and a half, the Yen has appreciated 40 per cent against the rupee. This combined with the appreciation of the U.S. dollar, has come as a double whammy for us".
The company is also considering assembling the Montero at its Chennai plant. Mr. Vijay Kumar further commented that, "Building the Outlander in India gave us tremendous exposure in assembling a premium range of SUVs. We hope to start assembling the Montero in the midterm".
With the latest price list, the Outlander and the Pajero from the SUV segment will become costlier by Rs 1 Lakh. Recently launched face lifted version of the Montero will also see a steeper hike because of higher import duty tax. The Mitsubishi Cedia will be dearer by Rs 50,000 and the Lancer will add an extra burden of Rs 40,000.