Proton considering HM plant to assemble cars in India

Proton Holdings Bhd, the Malaysian domestic automobile manufacturer is planning to join hands with the Indian car maker Hindustan Motors. As per the reports the Malaysian car maker will be signing a contract deal for assembling the company's automobiles for the domestic auto market.

As per the trustworthy sources near to the deal, the auto giant will declare it by end of February this year. The Malaysian auto maker is in conversation with Hindustan Motors for using the company's Chennai auto plant to assemble Mitsubishi Lancer and also to manufacture Exora, the multi purpose vehicle in India. The company sources also revealed the particular arrangements may extend even to various other manufacturing units of HM such as the ones in Indore and Uttarpara.

As per the reports, Proton's senior officials visited Hindustan Motors Chennai manufacturing unit on various occasions in last three years. The sources also suggest that HM and Proton team aim to introduce Exora the MPV in the auto market. The source made a point when they said that Proton seems to be more interested in the bigger role with Hindustan Motors. However, the reliable sources in Chennai component sector revealed that the Malaysian auto maker Proton is keen in sourcing the transmission systems and powertrain from Hindustan Motors group firm Avtec,

BVR Subbu, the former President Hyundai who is the director on Proton board said that the Malaysian auto giant is in talks with different Indian auto makers but he refused to give away further details. Manoj Jha, Hindustan Motors Managing Director deniedany conversation with Proton. He said that in the auto industry various manufacturers talk with different motives with auto makers on various issues. As far as the talks with Proton is concerned it was not fruitful.

Recently Datuk Syed Zanial Abidin Syed Mohamed Tahir, the MD of Proton Group revealed that the company wishes to launch Persona, Saga, Exora and Emas hybrid car models in the Indian auto sector. He also mentioned that the Malaysian auto brand will be entering the domestic auto market for assembling its cars but for all that the announcement will be made in the coming three to four months.

The Malaysian auto maker is in talks with the Indian auto giants from more than a decade now which includes names like HM, Hero Group and Mahindra & Mahindra too. It was also reported that the Malaysian auto giant also contacted Argentum Motors, the auto company which was co founded together by Subbu. But nothing worked out.

As per the sources Proton is coming with a constraint budget in the Indian auto market, which is why the auto company is looking for assembly investment. The global MD for Proton also reveled that the Malaysian auto giant is in talks with the European auto maker for the diesel powertrain. It is speculated that the talks are being held with Renault. The reason behind the same is that the Indian auto market hold a great demand of diesel cars.

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