Hindustan Motors Director: Due diligence for EV to be completed by mid-October

27 Sep 2022 , 06:50 AM

By the middle of October, CK Birla-owned Hindustan Motors Ltd expects to have finished the necessary due diligence for its proposed electric two-wheeler project with a foreign partner, a company official said on Monday.

The joint venture (JV structure)’s “will be finalized,” during the due diligence procedure that both businesses have started, according to HM Director Uttam Bose, who talked to ET.

The business, which formerly produced the famed “Ambassador” car, has partnered with a European organization to produce electric two-wheelers by the end of the following fiscal year.

By the middle of October, according to Bose, the due diligence procedure is anticipated to be finished.

He added that “this will be the initial capital expenditure by both the companies” and that the total investment for the electric vehicle (EV) project will be close to Rs600 crore.

By the conclusion of the following fiscal year, the JV company is anticipated to introduce the electric two-wheeler, according to Bose.

A pilot run for the project won’t be able to begin for about six months after the JV is formed, he said.

The project will be built in the Uttarpara facility in West Bengal, which formerly produced “Ambassador” cars.

Due to a “lack of demand” for “Ambassador” cars, the business shut down production in 2014. The 314 acres of land in the Uttarpara facility were approved to be sold by HM for alternative purposes by the West Bengal government.

A land developer had purchased the block of land.

For feedback and suggestions, write to us at [e-mail]