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HM packs Lancer with lavish add-ons, hikes rate by Rs 7000 

N Madhavan  
CHENNAI, MARCH 20: Customers continue to be the ultimate beneficiaries of the `car wars' in the Indian automobile industry. Apart from having a proliferation of models to choose from, they are being wooed with more and more features. The latest to do so is Hindustan Motors (HM) which has added features worth over Rs 20,000 for its Lancer model but has effected a price hike of only Rs 7,000 with effect from March 1.

The company, based on customer feedback, has added five additional features viz. digital clock, rear seat belts, chromeplated grill, rear garnish and a foot rest near the clutch for the driver. With this, Lancer will be available as a fully packed model and its other features include CD changer, power steering, power windows, motorised side view mirror, central locking etc.

It may be recalled that HM had taken a conscious decision to add more value to Lancer in a bid to counter competition from Ikon and Accent. The diesel model GLX dv now carries an ex-factory tag of Rs 8.75 lakh while the petrol version of Lancer GLX iv costs Rs 7.68 lakh.

The entry of Ford Ikon and Hyundai Accent, positioned at the lower end of the mid-size segment, did have an initial impact on Lancer sales. During the months of October, November and December 1999, Lancer's sales tapered off at around 500 levels. But have recovered sharply in January and February this year to touch 655 units. In March, the company hopes to sell over 1000 Lancers.

Moreover, good response to the two luxury variants of Lancer viz. SLX and SFX has forced the company to rework its product mix. The response to SLX model has reportedly exceeded company's own expectations and the demand for it is said to be around 400 units per month. HM had decided to launch a luxury version based on market feedback which said that the interiors of the car was not as plush as that of Opel Astra. To take care of this feeling the company had packed more features apart from putting a leather seat. It was also priced higher.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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