Report – Hindustan Motors shuts down Uttarpara plant until further notice

Posted on May 24 2014 - 2:04pm IST
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Hindustan Motors has temporarily suspended operations at its Uttarpara plant in West Bengal, leaving the fate of the HM Ambassador hanging.

Media reports this morning list mounting losses, paucity of funds, growing indiscipline, low productivity, etc as reasons for the closure effective from 24th May.

HM Ambassador Encore BS4

Hindustan Motors has shut down its Uttarpara plant until further notice.

The company has been struggling to make ends meet for a while now, with the most recent move prior to the suspension of work at the plant was a total rejigging of the top management. Plans to rope in a consultant to bring about changes were also announced. Talks about a potential joint venture to rescue the stricken company were also in the air.

After a failed attempt to sell its Chennai plant for a sum of Rs 150 crore to its business partner Mitsubishi, Hindustan Motors handed over the plant to a separate entity – Hindustan Motors Finance Corporation.

Hindustan Ambassador BS4 diesel

Low productivity, fall in demand and cash crunch have forced HM’s hands into shutting down its plant.

IAB learns that projects the company was working on – like a turbocharged 1.5-liter BS 4 variant of the Ambassador – have all been put on hold. There is no word on when the factory will start rolling again.

The suspension of work should help the company cut down some of the losses and reopen the plant after getting its act together.

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6 Comments so far. Feel free to join this conversation.

  1. PUSKAR PAL May 26, 2014 at - Reply

    I am born and brought up in Hindmotors which is my native place. I still have the sweet memories of my childhood days when Hindustan Motors Ltd. used to be the only giant automobile industry in our country running with its full capacity. More or less each and every family of my locality was having at least one employee of the company and families used to have golden days because of their earning from this company.The company is proving direct employment at various levels in addition to indirect job opportunities to vendors,suppliers,contractors,dealers etc. Today I am staying in Maharashtra for last more than 28 years but still I am shocked after hearing the news that Hindustan Motors shuts down Uttarpara Plant. My humble request to the management is to re-consider the deceision in favour of re-opening the Uttarpara Plant continuing the production of iconic Indian ambassador car plus modified low rider versions of car wit a competitive price.This will benefit the society at large and our country in particular. With warm regards………….Puskar Pal.

  2. Rahul Jadhav May 25, 2014 at - Reply

    very sad news ambassador car is stop production only one car iconic indian ambassador car , pls the fast changes ambassador car , new dealer netwok , advertisement Tv channel news paper, storngly marketing, world king car no stop the production, indias all car range is a out side only indian ambassador car is king world famous car pls reopen plant thanks,,,,,,,,,,

  3. vishal deka May 24, 2014 at - Reply

    HM should come back with something new and different. lyk a modified low rider version of ambassador or a muscle car. india lacks muscle cars …. whichever car maker brings a muscle car first will surely benefit a lot..

  4. Jack Yan May 24, 2014 at - Reply

    It was inevitable. Other than government, who really buys an Ambi? There aren’t enough private buyers for them, and you don’t see too many Hindustan-built Mitsubishis, either. The reality is that Indian car buyers are far more sophisticated than Hindustan would like to believe. When the Hindustan website points out that one of the special features of the Ambassador is a door mirror and a ‘headlamp with clear glass’ (I guess it is better than opaque, painted glass!), then you know they are living on another planet. Let’s hope this suspension means Hindustan will come back with better and less dated product, and that this international JV is not just idle talk.

  5. choturam May 24, 2014 at - Reply

    Ambassador model has not changed since ages. HM should have kept pace with the modern world. People look for newer models and much more fuel efficient cars.
    People’s attitude of “Cholba na” did hurt the plant to a great extent. Management has been un professional and CK Birla has been to naive in his handling of the plant.
    HM cannot live on life support provided by the government. This had to happen. I am doubtful that the plant will reopen anytime soon. I am sad for everyone as not only the workers but all the vendors suppliers, dealers etc will be put out of work.

  6. Hem May 24, 2014 at - Reply

    They need strong product to sustain in very competitive market. Ambassador is out dated design. Everyday new models are launching HM can’t run long with Ambassador.

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