Interview: A Sankara Narayanan, Director, Hindustan Motors

ZW: Why have you chosen to introduce the Pajero Sport through the CBU route and not the CKD route? I believe you have plans to eventually go the CKD way.

Narayanan: We feel that the CBU route offers us a better chance to understand how the model will perform in the market. While it might be a little more expensive, it also gives us time to set up the sales and service for the vehicle. By that time, we are well in place to make the leap to install equipment and eventually go the CKD way.

Our plan is to have the CKD operations ready by September this year and as expected, the Pajero Sport will then be offered at a lower rate.

ZW: Is Mitsubishi looking at offering more engine options and an automatic transmission on the Pajero Sport?

Narayanan: As far as an automatic option is concerned, we will study the market and if we feel that there is enough demand, we will look at introducing the Pajero Sport with that transmission. In terms of engine options, internationally there is a smaller engine, but this currently isn’t on the cards.

ZW: What would be the fate of the existing Pajero SFX model?

Narayanan: As of now, we will continue selling the existing Pajero SFX alongside the new Pajero Sport, however once our CKD operations commence; we will phase out the older model.

ZW: HM-Mitsubishi has not been that aggressive in the market as compared to other manufacturers. By treading slowly, don’t you feel that this hampers both market perception as well as your brand value?

Narayanan: Aggressive is an adjective that you have used and honestly that isn’t our aim. We try to be the best in terms of offering quality products, good service and maintain a good sales reputation. We aren’t operating at extremely large volumes just yet and while the competition might move at a different pace, we have our plans and will operate accordingly. 

ZW: At Rs. 23.53 lakh, ex-showroom, the pricing is a notch above its competition. So you think the Pajero Sport will still be competitive enough among other established players currently in the market?

Narayanan: Our initial experience over the past ten to fifteen days in the market has yielded a lot of positive feedback. While the fate of the vehicle can be decided only after being in the market for some time, I have already mentioned that work is on to set up our CKD operations and that should allow us to lower the cost of the product and then we will be able to offer a rather competitive pricing.

ZW: Could you shed some light on how HM-Mitsubishi is faring in the market, its future plans, investments, etc.?

Narayanan: The Pajero has been doing very well, and the only vehicle that has witnessed a drop in sales is the Outlander which we feel is suffering due to soaring petrol prices. The initial response to the Outlander was great and we are now in talks with Mitsubishi to look at the feasibility of introducing a diesel Outlander in the market. We are also looking at introducing the new Outlander that was showcased at the Geneva Motor Show this year. In terms of investments, we are looking increasing capacity at our Chennai plant as well as setting up the CKD line for the Pajero Sport. In doing so, we will spend anywhere between Rs 40 to 50 Crore.