Priced at Rs 7.29 lakh in Chennai and Rs 7.7 lakh in Mumbai, the petrol version (1500 cc) is supposed to have a technological edge over other cars. To compete in the premium segment along with Opel and Honda, the Lancer promises less gear shifting for drivers, and an air conditioning that cools even under desert conditions without requiring extra power.

The car (which comes from a family of racers) boasts of excellent pick up, offers child-proof locks, side-impact bars, electrically controlled side rear view mirrors, cable operated fuel lid and trunk opener, cup holder and other features that are standard equipment.

The diesel engine powered version (2000 cc) costs Rs 8-lakh plus (Rs 8.31 lakh in Chennai, Rs 8.76 lakh inMumbai) and is claimed to be as noiseless as the petrol version. The petrol-driven Lancer delivers 12 km to 14 km per litre in city driving conditions, according to the company.

Speaking to media persons on Friday, Hindustan Motors executive vice president R Santhanam said that in the current year 5,000 cars would be produced. This would be gradually stepped up to 12,000 cars the next year, further increased year on year till the plant touches full capacity of 24,000 numbers by 2003 in line with Mitsubishi's global experience of phased entrance in new markets.

HM apart from paying Mitsubishi a lumpsum amount for the supply of technology, imparting training and information in the manufacture of Lancer is also paying a royalty of 5 per cent of the value of components imported at ex-factory price less landed cost. The indigenisation levels are currently at 40 per cent, but are expected to indigenise to the extent of 67 per cent by March 99. An engine and transaxle facility at Pithampur near Indore willsupply Lancer's engines and transaxle.

HM is also exploring export possibilities to neighbouring countries, but will not venture into Mitsubishi territories in East Asia.

In the next year, the Lancer is expected to contribute 25 per cent to HM's total sales, while the RTV, Trekker, Ambassador, and Contessa models will contribute 35 per cent, the remaining coming from its earthmoving equipment division. At a later date variants of the Lancer would also be considered after getting customer feedback, executive director A Sankaranarayanan said.

The Ambassador is also getting a new look (a better finish, suspension, interior and boot) at no extra cost. This version is coming out in November.

On the marketing front, HM is restructuring its channels into three independent networks identified by three colour lines, blue, red and green. The blue line network consisting of 90 dealers will sell Ambassadors and Contessas in cities and towns. The red line network consisting of 35 dealers will sell Lancer in majorcities. The green line consisting of 100 dealers in semi-urban and rural areas will sell the RTV and Trekker. All the networks in addition to selling specific products would also service and stock spare parts for the whole range of HM products.

HM has deployed Rs 505 crore in the last three years for modernisation of its Uttarpara facility and new projects. An amount of Rs 300 crore was used for the Lancer production facility, Rs 37.07 crore for the Rural Transport Vehicle project, Rs 79.24 crore for its power unit plant at Indore, Rs 64.89 crore on its earthmoving equipment division and Rs 24.14 crore for its power products division.

Tyre suppliers make inflated claims

Even as the Mitsubishi Lancer got ready for its launch, its tyre suppliers have already gone to town--each claiming that the new car is rolling on their tyres.

Riding piggyback on the publicity surrounding the Lancer plant inauguration, MRF and Bridgestone, the two OEM (original equipment manufacturer) suppliers have placedadvertisments in a leading daily claiming association with Lancer. Each seems to have conveniently ignored the other with Bridgestone staking claim as `the chosen one' and MRF claiming that `the choice of world class is only MRF'.

The bottomline however is that both MRF and Bridgestone are `approved OEM suppliers' for the Mitsubishi Lancer. The supply contract is that 60 per cent of the tyre requirement would be supplied by MRF and Bridgestone will step in with the remaining 40 per cent.

But the interesting fact is that the first batch of cars which rolled out of the Hindustan Motors plant will run on `MRF shoes'. The 70 cars made in the plant so far have all been fitted with MRF tyres.

Official sources in the Lancer plant said that as far as the tyres go, the supply contracts with both the tyre manufacturers have been inked. But so far only MRF has begun actual supply. Bridgestone samples have been approved but bulk supply has not begun, said the source.

Bridgestone claims that its first consignmentwas getting ready to be shipped. Whatever the facts, both seem to have made an attempt at getting some extra mileage - even if it meant running the other off the road.