A company official on Monday said that Hindustan Motors Ltd, owned by CK Birla, expects to finish due diligence for the proposed electric two-wheeler project it has with a foreign partner around October middle.
Uttam Bose, HM Director, stated that the structure of the joint venture will be finalized during the due diligence process initiated by both companies.
The company that once produced the iconic Ambassador car has partnered with a European entity in order to produce electric two-wheelers within the next financial year. Bose stated that the due diligence process was expected to be complete by October middle.
He said that the total investment in the electric vehicle project will amount to Rs 600 crore. “This will be the initial capital expenditure of both companies.”
Bose stated that the JV entity will launch the electric two-wheeler before the end of the next fiscal year. He said that a pilot program for the project will take approximately six months after the JV is formed.
The Uttarpara plant in West Bengal will be the site of the project. This is where the ‘Ambassador’ cars were previously manufactured.
Due to “lackluster demand” for the ‘Ambassador’ car, the company shut down its plant in 2014. The West Bengal government allowed HM to purchase 314 acres of Uttarpara plant for alternative use. The land parcel was sold to a real-estate developer.