Report – Hindustan Motors begins process of handing over Chennai manufacturing plant

Posted on: Apr 2, 2014 - 9:44am IST

Hindustan Motors will, in a bid to save itself from heavy losses, handover the possession of its Chennai manufacturing facility to a separate entity – Hindustan Motor Finance Corporation.

HM Ambassador Encore BS4
The BS4-compliant Ambassador Encore was launched last September.

The company has kickstarted the process for this, seeking approvals from investors and the Tamil Nadu government. Earlier this year, the company’s shareholders in a meeting in Kolkata had given their nod to sell or lease the manufacturing facility in order to raise Rs 150 crore. It was also revealed that Mitsubishi was not interested in buying the plant for that amount.

The plant just outside Chennai assembles the Mitsubishi Pajero Sport out of CKD kits and helps Isuzu contract manufacture the MU-7 and D-Max utility vehicles.

HM Ambassador sub-4 metre sedan
A sub-4meter HM Ambassador is expected to be launched this fiscal year.

Hindustan Motors’ other facility in Uttarpura in West Bengal manufactures the Ambassador, sales of which have been down for a long time now. In a bid to join the hot sub-4meter segment, Hindustan Motors had recently announced that it would launch a sub-4meter version of the Ambassador in the 2014-2015 fiscal year.

The company also recently launched the Ambassador Encore at Rs 4.98 lakh. At the time of its launch, the company said that the car had garnered 400 bookings and an optimistic CEO, Uttam Bose, had said that the company targets 2,000 units to be sold each month.

[Source – The Times of India]

Next would you like to read more about the or more about Hindustan Motors?

3 thoughts on “Report – Hindustan Motors begins process of handing over Chennai manufacturing plant

  1. Manish says:

    Where other manufacturers are launching 4-5 new attractive models every year, Amby is still having same looks and some cosmetic changes inside. Are they planning to have Guinness book records for selling same model for 100 years ? LOL

    Amby should think and work aggressively in launching new models, which young generation will aspire for… Like Datsun is doing right now.

  2. abhijit says:

    Yes. what Raghvendra said is correct. we are big fans of Amby but they need to improve in technology.
    Classic example is of royal enfield and London cabs..

  3. Raghavendra says:

    Unless HM can resurrect ambassador marque like Royal enfield had done with their bikes, they dont stand much chance. What they need is support from some big automotive player to bring Amby back as a classic brand, like Mini.


Leave a Reply

Your email address will not be published. Required fields are marked *

About the Author
Karthik H

A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to for quick and unassuming updates from across the world.