The most common and most likely answer to this crossword clue is the 7 letter word CORSICA
C
O
R
S
I
C
A
More clues leading to the result CORSICA
- Company car is damaged in mountainous place
- Rupees southern India discovered in drug island
- Fabulous bird raised, literally, on an island
- Island men reproduced exactly in California
- First of cluesnearly upset island
- Company car is damaged making for a Mediterranean island
- Gosh, it was meant to be: a Mediterranean island!
- Company car is wrecked in isolated area of France
- I say so — one’s an island
- Island company reproduced cars, importing one
Buddy explains!

The straight part
We know that "mountainous place" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case mountainous place = corsica.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.