Mitsubishi, the sixth largest car maker of Japan has joined hands with Nissan to explore several new projects covering shared products, technologies and manufacturing capacity. Mitsubishi has partnered with Hindustan Motors for over 20 years. However, now the company may directly invest in India due to the new alliance with Nissan.
Nissan and Mitsubishi already have a joint venture named NMKV, which was formed mainly to co-develop kei cars for both the brands. The first cars of this venture were Nissan Dayz and Mitsubishi Ek Wagon which went on to sale in Japan a few years back.
Now Nissan will pay $2.2 billion to acquire 34% stake of Mitsubishi motors. This tie up with Nissan would open the gates of some countries - including India - for Mitsubishi. The company has already have set its footprint in India with quite a bit of fan following, but failed to take the advantage mostly due to the poor after sales service and dealer network. Now the company can use Nissan’s facility of Tamilnadu, which would help the company to have an easy entry into the subcontinent.
According to the Renault-Nissan CEO Carlos Ghosn, the company is discussing to develop a new platform which will help the company to address an important part of India’s market, where the company may include Mitsubishi as a partner.
India has already seen some capable Mitsubishi cars such as the Lancer, Pajero, Pajero Sport and Montero. With this alliance, the Indian market can get the next generation Mirage in both hatchback and sedan body style.
With the force of three companies Nissan, Renault and Mitsubishi the alliance could be the next big thing in India which can even challenge the king of Indian market, Maruti Suzuki.