The hot scenario a year ago: The Malaysian national car maker Proton is considering venturing into the Indian car market. It will enter the growing Indian market with a range of hatchbacks and saloons. The Malaysian car maker is likely to roll out its Savvy hatchback and the Saga and Persona sedans in India. Proton earlier had talks with Mahindra & Mahindra and contract manufacturer Argentum Motors, but the partnership couldn’t happen. Now the company is on the lookout for other possible tie-ups to enter into the lucrative car market of India.

The present scenario: It’s more or less the same even now. But what’s the reason behind this sudden hype? That’s because the news is in the air once again that M&M and Proton are in talks. Yes, the car maker which has been waiting for the last many years for a small opening through which it can enter the Indian car market is believed to have started talks yet another time with Mahindra for a partnership. So, is Malaysia finally going to capture India’s small car market?

The two had spoken in 2007, but it did not bear fruit. Following that, the Malaysian auto maker opened a dialogue with some other Indian players, including Argentum Motors. Did it work? No. Before we forget, did you know that an exclusive U.S. dealer for M&M filed a law suit this week against the Indian auto major for delays in introducing a pick-up truck in the U.S. market? God! What a tough time Mahindra has been having! Renault separated, the Logan becomes M&M’s responsibility and so much more. Even if M&M has to modify the Logan, it needs permission from Renault and has to shell out lots to satisfy the French auto giant.

Hopefully, if all works well, the new partnership may help M&M shine. Right now, a source in-the-know of the development says, “Talks started again this year. There is a possibility of a partnership.” But, Mahindra says, “We do not comment on speculative reports.” No comments could be obtained from Proton either. Proton too has had its bad days of trying hard without fruit. Earlier, Proton was linked with contract manufacturer Argentum Motors, which acquired the manufacturing unit of the non-operational Daewoo Motors India at Surajpur, for a possible tie-up. But, it actually hadn’t worked.

Now, Proton has learnt from experience and stays firm that it needs to have a presence in India. “Moving forward, the group (Proton) will also focus on high-growth regional markets in ASEAN for the completely built-up (CBU) market, as well as China, India and Iran for the completely knocked-down (CKD) market,” Proton had said in its annual report for 2009.

M&M may support Proton in the assembly of CKDs. India can certainly be one of Proton’s key markets to export its products. The Indian car market has also been tough and has fared well out of the economic crisis. “Apart from the local market, we have begun a more aggressive approach to capture export markets as defined under the Asian Multi-Local OEM (AMLO) strategy, namely ASEAN, China, India and the Middle East-North Africa (MENA),” the report had said. So, let’s hope that Proton drives into India with its Exora MPV, small car Savvy and the Saga sedan as soon as possible.