Mitsubishi to exit sedan market; focus on SUVs in India

This is because the company feels that the higher-margin and niche SUV market will be easier to tackle with its limited sales and service network, industry sources said. In contrast, it would need much higher economies of scale to be profitable in the extremely price-sensitive and competitive small car and sedan segments.

“The company will focus on SUVs, which constitute our strength, for the next few years. Pajero Sport has been especially accepted very well worldwide. Once we establish a strong foundation through SUVs, we will move on to other segments such as sedans and compact cars,” a Hindustan Motors (HM) spokesperson told FE. Kolkata-based HM, a CK Birla Group company, has a technical collaboration with Mitsubishi Motors Corporation since 1998 and a licence to manufacture and market Mitsubishi vehicles.

This is a volte face from March this year, when Mitsubishi officials had said that the company is looking at the “feasibility” of bringing both the hatchback and sedan versions of the Mirage to India. The Mirage is made in Thailand and was launched in the same country last April.

As for its sedan range, production of the Lancer sedan has been stopped at its Tiruvallur plant (in Tamil Nadu)

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