More news has emerged about Proton’s anticipated move into the Indian market – the company is said to be in talks with Hindustan Motors, India’s oldest automaker, to sign a contract manufacturing deal in which it will be using HM’s platform to assemble its portfolio cars in India.

Reports indicate that an announcement regarding the tie-up is likely to be made by around end of February, and Proton is expected to use HM’s Chennai plant, which was initially established for the assembly of the Mitsubishi Lancer. It has also been speculated that the new contract manufacturing tie-up might be extended to HM’s ailing plants that are located in Indore and Uttarpara.

The Proton models that are expected to be initially launched in the Indian market are the Saga, Persona, Exora and Emas hybrid models.

According to an Indian daily, Hindustan Motors’ MD Manoj Jha was qouted as saying otherwise recently. “In the automobile business, there are all kinds of discussions with all sorts of companies at all points of time, but the discussions with Proton that you are talking about is not taking place.”

It has been more than a year since Proton has been mulling to enter into a contract manufacturing tie-up with an Indian firm. In previous years, the company had been in talks with the likes of Mahindra & Mahindra and the Hero group.