Hindustan Motors will manufacture electric two-wheelers in a joint venture with its European partner.
Hindustan Motors (HM), the company that made the iconic “Ambassador” cars, will likely launch electric two-wheelers by next year, in a joint venture (JV) with its European partner. The joint venture may also consider making electric four-wheelers at a later date. The company will employ around 400 people when commercial production begins for its battery-powered models.
Currently, the two companies are reviewing their financial due diligence, which is expected to start in July and will last for two months, after which the technical aspects of the joint venture will be reviewed, which will take another month, Hindustan Motors’ Director, Uttam Bose, said. at PTI.
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After that, the two companies will decide on the investment structure and the new company will be formed, with the whole process to be completed by February 15. Once the joint venture is officially formed, two additional quarters will be required to launch the pilot. of the project. And the final product of the joint venture will likely be launched by the end of the next fiscal year. “After two years of marketing the two-wheeler project, a decision will be made on whether to manufacture four-wheel electric vehicles,” Bose said.
HM’s Uttarpara plant will also need to be upgraded as some control systems, as well as electronic hardware and software, need to be replaced. The company had closed its plant in 2014 due to lack of demand for Ambassador cars. HM then sold the iconic brand to French carmaker Peugeot for ₹80 crores.
In addition, HM had sold about 314 acres of land to the Uttarpara factory for alternative use after obtaining permission from the West Bengal government, following which the plot was sold to a property developer. “Hindustan Motors is making a profit now and is a completely debt-free business,” Bose said.
Date of first publication: Jul 03, 2022, 4:51 PM IST