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Hindustan Motors, the former maker of the iconic “Ambassador” cars, plans to establish a joint venture with a European company in order to produce electric two-wheelers next year, according to a senior official. He said that it might consider making electric four-wheelers also in the future.
Uttam Bose (Director of Hindustan Motors) said that financial due diligence will begin in July. This will take two months. Then, technical aspects will be examined and this will take another month.
He stated that only then the structuring of investments and the formation of the new company will be finalized. This is expected to finish by February 15.
Bose stated that two additional quarters are required for the pilot run of this project after the entity is formed. He also said that the product will likely be launched before the end of the next fiscal year. The top company official stated that after two years of commercialization of the two-wheeler project, a decision on the production of four-wheeler EVs will be made.
The company shut down the plant in 2014 because of a lack of demand for Ambassador’s cars. It then sold the iconic brand to French automaker Peugeot. It also sold the luxury brand ‘Contessa,’ its car brand, to SG Mobility.
After HM had sold 314 acres of Uttarpara plant land to the West Bengal government for alternative use, the parcel was sold to a real-estate developer.
Bose stated that Hindustan Motors is now making profits and is debt-free. Bose stated that the current workforce of 300 people is suitable for the new project. He said that around 400 people would be employed in the project when commercial production begins.