A new twist in Proton's Indian Entry?

10/01/2011 - 09:09 | ,  ,   | Kaustubh Shinde

The entry of Proton in the Indian market is becoming no less than a twisty Bollywood plot. Recently, speculation was rife that Proton was in talks with Nissan and had almost finalized the agreement.

Now, The Economic Times is reporting that Proton is in talks with Hindustan Motors to use their Chennai plant for manufacturing the Exora MPV. Sources also said the arrangement could extend to other plants belonging to HM including the long-ailing ones in Uttarpara and Indore.

Proton Exora MPV

Previously, the company was also in talks with Volkswagen, Hero Motors, Mahindra & Mahindra and Argentum Motors for their debut but none of these deals could have worked out. Right now, Nissan and HM seem to be the front running partners in Proton’s Indian quest.

Proton Exora Brochure

Proton Exora BrochureProton Exora Brochure

HM-Proton tie-up raises two important questions

1) Would HM have right technical and marketing expertise to support a successful brand entry?

2) Does it make sense to tie up with a manufacturer which already has a tie up with Mitsubishi?

Mitsubishi’s performance has been anything but impressive in the Indian Market in the recent years. We really think HM should focus on their Mitsubishi JV and their own product portfolio at this point of time especially, when the company in planning a revival of the iconic Ambassador. Otherwise, it would just become a contract manufacturer with no identity of its own.

Source - economictimes.indiatimes.com

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