Proton, a Malaysian car manufacturer is currently finalising talks with Hindustan Motors for a contract manufacturing agreement to assemble their cars for the Indian market.
Both companies will announce the final decision by the end of February. Proton is in talk for using HM’s Chennai plant to assemble its MPV Exora where it is building Mitsubishi Lancer. If all works well, the company might extend its arrangement to other plants belonging to HM including the long-ailing ones in Uttapara and Indore.
Proton’s top executives have been visiting Chennai plant several times in the last three months. The current discussions between the two companies have focused to Exora to begin with but Proton is even more interested at a bigger level.
Hyundai president BVR Subbu, currently a director on the Proton board, said: “its true Proton has been speaking to some Indian manufacturers but I would not like to comment on the matter.” Hindustan Motors’ MD Manoj Jha, however, denied the talks with Proton, saying: “In the automobile business, there are all kinds of discussions with all sorts of companies at all points of time but the discussions with Proton that you are talking about is not taking place.”
Proton’s group MD Datuk Syed Zainal Abidin Syed Mohamed Tahir saying that his company will launch the Saga, Persona, Exora and Emas Hybrid models in India. He also said that “Proton would tap the experience of a local Indian company that already had its own plant for assembling vehicles and that the final announcement would be made this quarter.”
Proton’s global MD has also disclosed plans of tying up with a European car maker for diesel engines. Malaysian reports have speculated that talks could be on with Renault. Diesel vehicles are in big demand in the Indian market as well.
Source: ET
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