Hindustan Motors moves step closer to comeback as EV manufacturer
What's the story
CK Birla Group-owned Hindustan Motors Ltd. has completed the due diligence for the proposed electric two-wheeler project with its European partner (most likely Peugeot). The joint venture is gearing up to launch the electric vehicles in the next financial year, with production to commence soon at the homegrown automaker's Uttarpara facility near Kolkata, West Bengal. The iconic "Ambassador" moniker will likely make a comeback.
Context
Why does this story matter?
Hindustan Motors is the most legendary brand in India. The iconic Ambassador served as a mode of transport for government officials for several decades. With diminishing demands and stringent emission norms post-2010, the homegrown automaker shut down production in 2014. However, with the completion of financial due diligence, the company is set to make a comeback on our shores, albeit as an EV maker.
Announcement
The name of the European partner will be announced shortly
"The due diligence between HM and the European company is now complete. The name of the foreign partner will be announced shortly," said an official from Hindustan Motors. "The EV two-wheeler would be manufactured on 98 acres of land at the Uttarpara plant after modernization, as it is lying defunct for several years."
Information
Combined initial investment of Rs. 600 crore for the EV project
The combined initial investment for the EV project will be around Rs 600 crore. As of now, the investment is for all-electric two-wheelers. Around six months will be required to start a pilot run, after the formation of the Joint Venture (JV).
Future
A comeback for the iconic "Ambassador" moniker?
While the JV will initially focus on manufacturing electric two-wheelers, a decision to re-enter the four-wheeler is likely there on the cards as well. That could possibly mean a revival of the iconic "Ambassador" moniker in India. Modeled on the Morris Oxford, it was the first car to be made on our shores, and an EV avatar of the car would make sense now.