The Telegraph
Since 1st March, 1999
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HM slashes Lancer base model price by Rs 70,000

New Delhi, Oct. 21: Hindustan Motors has cut the price of the base model of its premium mid-size car Mitsubishi Lancer by Rs 70,000 to Rs 6.5 lakh (ex-showroom Delhi) to meet competition from rival models of General Motors and Toyota and increase sales.

HM vice-president G. Shyamsundar said the new price of the base GL model without power windows would be offered for two months, specially to target the fleet and taxi operators.

“We are also working on new introductions on the Lancer platform, which will take 12-18 months. We are also looking at different powertrains,” Shyamsundar told a news conference held to launch a limited edition variant of the Lancer called Exel.

The new variant, of which only 200 units would be manufactured, has been priced at Rs 8.25 lakh and Rs 9.24 lakh (ex-showroom Delhi) for the petrol and diesel versions respectively.

Besides the GL, the car is also available in GLX and luxury variants also.

The Lancer is produced in technical alliance with Japan’s Mitsubishi Motors Corporation at HM’s plant near Chennai which has a capacity of 12,000 units annually.

Shyamsundar said the launch of the Chevrolet Optra by General Motors and Toyota Corolla has hit sales of the Lancer but was confident of selling 5,000 units this fiscal, the same as in 2002-03.

During April-September 2003, HM sold about 2,000 units of the Lancer, a decline from 2,400 units sold in the year-ago period.

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