Mitsubishi Motors has recently tied up with Hindustan Motors for servicing of Pajero in the country at Lancer workshops and a manufacturing alliance is only a logical extension, said HM sources.

"Though the idea is still at a preliminary stage, we are open to the possibility," sources added.

If Mitsubishi decides to go ahead with its manufacturing plans in India, this would come close on the heels of another Japanese major Toyota Corporation announcing the launch of multi-utility vehicle in the country early next year.

Studies by Mitsubishi Corporation have shown that its range of sports utility vehicles will find a foothold in the Indian market as the market matures. The western and northern segments of Indian marketplace may be particularly lucrative to begin with. The company recognises that there is a small butgrowing market of upwardly mobile customers who are in favour of the sports utility vehicle.

Mitsubishi's sports utility vehicles include Pajero and its variants - Pajero Mini and Pajero IO. The company also manufactures Challenger for the Japanese market and Freeca in Taiwan and Kuda in Indonesia.

In a statement issued on Wednesday from Japan, Mitsubishi Corporation had stated that the company is not tying up with Mahindra & Mahindra for manufacture of multi-utility vehicles in India.

However, Mitsubishi's existing technical alliance with Mahindra & Mahindra for manufacturing Voyager in India will continue. In a joint press statement issued on Friday, the companies said: "the existing tie-up for Voyager continues as before. All the royalty payments with regard to the Voyager are being made as scheduled."

Both intend to work together to further the success of the Voyager project, the statement added.

Meanwhile, a training programme for HM engineers on all technical aspects of servicing the Pajero isalready on. HM would subsequently carry out further training of personnel at workshops across the country.

HM and Mitsubishi have an existing technical tie-up for manufacture of Mitsubishi Lancer targeted at the premium mid segment model.