Mitsubishi to re-evaluate India operations with Renault-Nissan Alliance

Renault-Nissan Alliance's acquisition of Mitsubishi Motors Corporation was announced in 2016, and should give a new lease on life to the Japanese car maker.

Mitsubishi Motors, which began around 47 years ago but has its roots in 1917 when Mitsubishi Shipbuilding made the first series-production automobile in Japan, has been in a bit of soup for around 20 years. The struggling Japanese car maker got a shot in the arm when it became part of the Renault-Nissan Alliance in October 2016. Now, Mitsubishi appears to be preparing for another round in the competitive automotive world with the help of its new alliance. Carlos Ghosn, head of the Renault-Nissan Alliance, recently commented positively about a possible re-entry of Mitsubishi into the Indian market.

“Without any doubt, India is a very big future market for any carmaker and for Mitsubishi in particular,” Mr. Ghosn said when he was asked about Mitsubishi re-evaluate operations in India. Mitsubishi has been a niche player in the country’s bustling automotive market for years, working in collaboration with Hindustan Motors (HM) on a product-by-product basis. HM has either built or imported certain Mitsubishi models like the Lancer, Outlander and Pajero. Despite the extremely limited operations and range of products, the Japanese car maker does has its share of admirers in India. But the nature of the current partnership meant that Mitsubishi has never really been agile enough to bring in updated models or new products that are in demand.

Mitsubishi’s acquisition by the Renault-Nissan Alliance, which was the result of the fuel mileage scandal that erupted in early 2016, could provide it the ammunition to change up its Indian operations entirely. But the scandal, along with poor sales and operational issues in other international markets, means that India may not be an immediate priority for Mitsubishi. The Japanese car maker has to sort out its own internal challenges and could look at other markets before India, for which it would have to develop new products based on the Renault-Nissan Alliance’s platform. Also Read: 2017 Mitsubishi Lancer details leaked online; official unveiling in April

But Mitsubishi should also be getting a boost in the engineering and development department. Mr. Ghosn said that the CMF-A platform, which is used in the popular Renault Kwid and Datsun Redi-GO small budget hatchbacks in India, will also be available for Mitsubishi to use. He said, “Today you are having a Renault product (on the CMF-A platform), tomorrow you are going to have a Nissan product, but this platform will be open to Mitsubishi.” The Mitsubishi i kei car, which launched back in 2006, was an award-winning and highly successful small hatchback, and one of its last big successes. In India, the Mitsubishi Lancer still holds a special place among its fans, and Mitsubishi SUVs also remain popular choices. Put all of these together, and Mitsubishi could have a winning formula for India.