Hindustan Motors planning to enter into a JV with a European company for electric two wheelers production

4 Jul 2022 , 09:16 AM

According to a senior official, Hindustan Motors (HM), the former manufacturer of the legendary “Ambassador” automobiles, plans to establish a new joint venture with a European partner to produce electric two-wheelers by the end of the year. At a later time, it might consider producing electric four-wheelers, he said.

According to Hindustan Motors Director Uttam Bose, the financial due diligence of both firms would begin in July and take two months to complete. After that, the technical components of the joint venture will be examined, which will take another month.
Only after that will decisions about investment structuring and the creation of the new company be made, which is anticipated to be finished by February 15th.

After the creation of the new entity, according to Bose, the project’s test run will need to start in two more quarters. He also predicted that the finished product would probably be released by the end of the next fiscal year. According to the top corporate executive, a decision will be made on the production of four-wheeled EVs after the two-wheeler project has been commercialized for two years.

Bose added that parts of the control systems, as well as the electronic hardware and software, need to be replaced, therefore its Uttarpara plant will need to be retrofitted. He claimed that HM was the sole original equipment manufacturer (OEM) in the nation and that the Uttarpara facility was a fully integrated automotive factory with its own forging, foundry, paint shop, assembly, and welding facilities.

However, the business shut down the plant in 2014 because to a lack of interest in Ambassador vehicles and sold the venerable name to French automaker Peugeot for a profit of Rs80 crore. Additionally, it sold SG Mobility the rights to the Contessa premium car brand.

The Uttarpara plant’s 314 acres of land were sold to a real estate developer after the West Bengali government gave HM permission to sell it for different purposes.

Bose claimed that Hindustan Motors is currently profitable and completely debt-free. Bose stated that employees will be picked for the new project based on suitability and that there are currently roughly 300 employees.

400 people will be employed by the project once commercial production starts, he said.