Hindustan Motors eyeing JV with global automobile firms
Hindustan Motors (HM), makers of the iconic Ambassador, has initiated talks with global automobile firms to set up a joint venture for their Chennai plant. The West Bengal based manufacturer is running in the red due to poor sales and has divested the plant recently to an associate company Hindustan Motors Finance Corporation (HMFC) as part of a restructuring strategy.
The divestment was conceived in hopes for a joint venture partnership according to Uttam Bose, MD & CEO of HM. “Talks with the international companies are in an advanced stage and something will definitely fructify,” Bose said. Although a time frame wasn’t specified, he confirmed things would materialise within this financial year.
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The Pajero Sport is the only Mitsubishi car still assembled in India[/caption]
The Chennai plant assembled cars under license from Mitsubishi Motors of Japan. The production of the plant had not been in full swing as Hindustan Motors reported a net loss of Rs 15.51 crore in the third quarter of FY13 as against net profit of Rs 20.36 crore in the third qurater of FY12. The manufacturer’s passenger vehicle sales recorded a decline of 73.87 per cent to 232 units in March 2014 over March 2013. The Winner, light commercial vehicle (LCV) was not produced during the month of March while 26 units of the LCV sold in March 2013. Adding salt to the wound, Mitsubishi Motors discontinued the sales of the Cedia, Outlander and the Montero recently. This has resulted in the Pajero Sport being the only vehicle from the Japanese manufacturer’s stable assembled at the Chennai plant.
