"Mitsubishi has agreed in principal to consider more models for Indian markets," HM president BK Chaturvedi told PTI, adding that any new models agreed for India would be assembled at the company's Chennai facilities.

The issue of more models from the Lancer family including Cadia and Gallart was discussed when a team of the Japanese car giant visited India earlier this month, he said.

"We are now following up the issue and I will take a team to Japan next month," he said, adding that during the Japan visit the HM team would meet top executives of Mitsubishi including its chief executive.

Chaturvedi said at the moment, HM was looking at more variants of the Mitshubishi family only as the car was now an established brand in India and the company wanted to encash this strength.

Asked about launch of small cars in India to tap the growing market, he said the company was not looking at this option at present and wanted to strengthen the Lancer family by introducing new models.

Chaturvedi said HM would also concentrate on increasing calisation level of Lancer to cut costs apart from launching new models.

"We will push for it (launch of new models). Mitshubishi has also understood that the only way to be a leading player in the Indian market is to bring new models with increased localisation level," Chaturvedi said.

He said the company was planning to increase Lancer indigenisation level to 70 per cent from the present level of 56 per cent by end of the current year and upto 85 per cent by the next year.

The increased localisation level would help the company in cutting manufacturing costs by about Rs 40,000 per unit and achieve the break-even level by the next year, he said. Chaturvedi said the company would import parts of agreed Lancer models and assemble at its Chennai plant. Asked about the investments for the new models, he said there would not be a need for big investment plans as the Chennai plant was designed to handle various car models.

Hindustan Motors posted about Rs 62 crore losses last year. However, the company is expecting to be cash positive this year and achieve break even by the next financial year.