Mitsubishi Motors, is looking to penetrate into1.2 million a year Indian small car market and is thinking of introducing a compact family hatchback over the next 3-4 years.
While the company is operating in India for over a decade, the lack of a compact car has impacted its market share. Mitsubishi has presence only in the premium sport utility vehicle (SUV) and upper mid-size sedan segment.
As per the sources, the company is thinking of introducing the new compact car it is building for the Thai market under the eco car project, proposed by Thai government.
The company, with a technical venture with Hindustan Motors, intends to introduce the small car in Thailand during the first half of 2012. This car uses a totally new platform and has a 1.3-litre petrol engine.
The company might have to reorganize this engine and reduce its capacity in India, to benefit from the excise duty norms laid down by the government.
However the company officials refused to comment. The company had stopped work on the small car project last year, due to paucity of funds due to financial crisis.