Mitsubishi’s new extended pact with Renault is not expected to have any immediate India implications. The Japanese automaker produces small cars with Nissan and this will now be extended on a global basis to its ally, Renault.

It is too early to say if this will become an integral part of Renault-Nissan’s strategy for emerging economies, which include India, Russia, South Africa and Indonesia. It could well be earmarked for Japan and Europe instead, with electric small-car options leading the way.

For the moment, the focus of this extended alliance boils down to using capacity at the Renault-Samsung facility in Korea. The sedan that will be produced there for Mitsubishi is intended for the North American market.

In India, Mitsubishi’s presence is confined to its alliance with Hindustan Motors (HM), which rolls out models such as Pajero, Outlander and Cedia from its Chennai plant. In terms of market share, it has little to show, with both established players and newer entrants way ahead.

Daimler alliance

Mitsubishi was tipped for bigger things during its equity alliance with Daimler some years ago. There were talks of an Asia compact car being developed specifically for India and other markets. Even if this were true, it was quickly nipped in the bud when Daimler sold its stake in Mitsubishi.

Then came the talks with PSA Peugeot Citroen on an equity alliance and it was only natural for India to be back on the radar. This seemed to become even more relevant as PSA was then contemplating an India comeback. The logical route then would, perhaps, have been to start some kind of an assembly operation at the HM plant. Admittedly, a lot of this was mere speculation, which came to nothing when the two called off their talks.

No urgency

Even though Mitsubishi has been associated with HM for well over a decade now, there has been no sense of urgency to expand its India presence. There have been challenges it has had to deal with on a global basis which, perhaps, explains why it could not step on the gas here even if it had wanted to.

Renault-Nissan has already sewn up alliances with Daimler and Avtovaz of Russia. The idea is to go in for product synergies and save on costs, especially when Europe is still struggling and big automobile brands are grappling to stay afloat. For some, including General Motors and PSA, the future is China, as is evident in alliances with SAIC Motor Corp and a strong possibility of a tie-up with Dongfeng (with PSA).

It is in this scenario that Mitsubishi will take the next step forward with Renault-Nissan. There is no telling if a new global car will find its way into India, though ASEAN (specifically, Thailand or Indonesia) seems a more likely possibility. The Renault-Nissan alliance has a script in place for India that just may not have a berth for Mitsubishi, at least for now.

> murali.gopalan@thehindu.co.in

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