Furthering their tie-up, Hindustan Motors Ltd and Japan's Mitsubishi Motors launched their premium sports utility vehicle, the Montero 09, on Wednesday. The Montero is a proven winner among buyers as well as on the rally circuit – it has won the prestigious Dakar rally for an unprecedented 12 times.

The Indian version was launched by HML managing director R Santhanam, managing director of Hindustan Motors, along with various company officials. It coincided with the inauguration of HM-Mitsubishi's second wholly-owned showroom, 'Autodrome', at the Atria Mall in Mumbai's Worli district.

Santhanam said at the launch, "Mumbai has been one of our fastest-growing markets over the past few years. Bringing Mitsubishi Motor's to Worli is a logical response to that development. In order to build a sustainable, successful business, you have to be present in a market. It is important that we remain committed to our expansion plans."

The Montero '09 incorporates Mitsubishi Motors' key retail-design elements. It also boasts a new chrome-plated front grill and seven-spoke 17-inch light alloy wheels, enhancing its sporty appeal. It is fitted with Yokahama tubeless radial tyres, enabling it to handle tough road and off-road conditions.

The Montero '09 is available in both automatic as well as manual transmission versions. It has six colour choices, and with a further choice of beige leather or black leather interiors. The manual transmission version is available only in two colours, but the automatic one has a greater choice of colours and interiors.

It was announced at the inaugural that following HM-Mitsubishi's policy of 'one country, one price' both manual and automatic editions have been priced at Rs4194 lakh ex-showroom. The vehicle is imported as completely built unit from Japan.

While saying that the Indian luxury market is growing, HM at the same time expects sales of its Mitsubishi-branded cars to see pressure on margins due to forex fluctuations. "We had total Mitsubishi sales of 4,400 vehicles last year; this year also we would be doing the same," Y V S Vijay Kumar, executive vice president, told reporters on the sidelines of the launch.

"We were going rapidly in the first 6-7 months of the fiscal, and then the bottom fell off," he said.

The manufacturer of the iconic Ambassador, HM also sells Mitsubishi's Lancer, Cedia, Pajero and Montero brands in India. The firm has sold around 650 units of the Mitsubishi Montero in the country over the past three-and-a-half years, Vijaykumar said.

Vijaykumar said the firm is considering hiking prices of its Mitsubishi models to help offset margin pressure in April, but declined to be specific.

Hindustan Motors' Chennai plant, where it puts together its Mitsubishi vehicles, is running at about 40 per cent of its total capacity of 12,000 units, Vijaykumar said, while Santhanam added that the firm will revise its expansion target for fiscal 2010 due to the slowdown.