Jamshedpur, June 14: Leading Japanese automaker Mitsubishi Motors has plans to set up its plant at Adityapur Industrial Area, the biggest auto manufacturing hub of Asia.
Mitsubishi India is gearing up to enter into an agreement with a Jamshedpur-based company. Though the name of the investor is yet to be announced, but the sources said that it supplies components to automobile makers in India. The initial talks have been positive and the partnership is expected to be announced in September this year.
A K Srivastava, chairman, Indo-American Chamber of Commerce, Jamshedpur said that they have received the information in this regard. The move will help to provide fillip to industrial growth in Jharkhand. He said that amidst the lockdown the industrial sector has received a set-back but this news has come like a ray of hope.
“I am really happy to know about the progress made over the investment. We promise to lend all support to the company. Moreover, we are confident that Hemant Soren led State Government will also provide all the necessary support to the auto company,” said Srivastava. He said that Adityapur Industrial Area has all the facilities to ensure success of the project.
Industry sources informed that the final go ahead on the new partnership is expected from the Mitsubishi headquarters in Japan. Around Rs 500 crore will be infused as the new investment. The investment will help Mitsubishi to set-up a new assembly line in Jamshedpur. The company will initially launch Completely Built Units (CBU) in India.
The company has plans to launch two new SUVs. The company will launch an all-new SUV to counter the Toyota Fortuner, while an affordable mid-sized SUV will also on the cards. This SUV will take on the likes of the Kia Seltos and the Hyundai Creta.
Mitsubishi is likely to launch the new products under CBU route to take benefit of Indian Government decision of allowing importing up to 2,000 cars without local homologation. Mitsubishi will use this route initially before starting local assembly or production.
The sprawling Adityapur Industrial Area houses 900 units- including 11 large-scale, 64 small scale and 166 tiny industries. A few important industries that has global presence are Usha Martin Group, RSB Group, Tata Steel Growth Shop(TGS) etc., too situated in this industrial belt, situated in Seraikela-Kharsawan. There are 20 industries, which export its products to the USA, Australia and other European countries.