Reputed Ambassador maker Hindustan Motors to launch electric two-wheelers: Report

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Hindustan Motors, the brand behind the iconic Ambassador car, has decided to re-enter the market in one of the toughest EV segment: electric two-wheelers. The company hopes to establish a new joint venture with a European partner to manufacture electric two-wheelers. Despite being late to the party, Hindustan Motors plans to make the first electric scooter early next year.

According to a report in PTI, companies will have to go through the process of check and balance before the partnership becomes official. First, the financial dues scrutiny of both the companies will begin in July, which will take two months. Once that is done, the technical aspects of the joint venture will be looked into and it will take another month, according to Uttam Bose, director, Hindustan Motors. After this step, the investment profile will be decided and eventually a new company will be formed. The process is expected to be completed by February 15.

Bose claimed that after the formation of the new unit, two more quarters would be required to start the pilot run of the project. He also gave a big hint on the launch date. He claimed that the final product is likely to be launched by the end of the next financial year. The decision does not stop at two-wheelers. The company is also eyeing the electric four wheeler segment.

“After two years of commercialization of the two-wheeler project, a decision on manufacturing of four-wheeler EVs will be taken,” the official said.

Bose also said that its Uttarpara plant will have to be retro-fitted, as some control systems need to be replaced with electronic hardware and software.

Bose described the integrated facility of Hindustan Motors. He claimed that it is the only Original Equipment Manufacturer (OEM) in the country to have its own forging, foundry and paint shop, as well as an assembly and welding shop at its Uttarpara facility.

However, the company closed the plant in 2014 due to lack of demand for ‘Ambassador’ cars, and later sold the coveted brand to French auto maker Peugeot at a recovery of Rs. 80 crores. It has also sold its luxury car brand ‘Contessa’ to SG Mobility.

The West Bengal government had allowed HM to sell around 314 acres of land at the Uttarpara plant for alternative use, following which the parcel was sold to a real estate developer. “Hindustan Motors is now profitable and completely debt free company,” Bose said.

Post Iconic Ambassador Manufacturer Hindustan Motors to launch electric two-wheelers: Report first surfaced on BGR India.



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