Will Hindustan Motors make New Electric Ambassador Cars in 2022

Will the sleeping giant Hindustan Motors again come back in action to make an electric version of the iconic Ambassador car? The question comes to mind after the message from the car company.

About Hindustan Motors (HM)

The manufacturing plant of the HM (Hindustan Motors) is the oldest car manufacturing facility in India and the second in Asia after Toyota in Japan. This Uttarpara plant is 20 km apart from the city of Kolkata. Its operation was stopped in 2014. The total area of the premise is spread across 295 acres.

Also read: Toyota signs MoU for an additional investment of Rs 4,800 crores

HM had a wide distribution network in India. Around 2,000 workers were employed at the time of suspension of operation at the plant but now there is only around 250 present.

hindustan motor ambassador
Hindustan motor ambassador (image source: hindmotor.com)

Hindustan Motors signs MoU with a European Company

Electric vehicles are the future of transportation in the coming years in India. In this journey, not only many startups are born to give facility of electric mobility but also some suspended automobile companies back to life. HM may be one of them who recently informed the stock market authorities about the plan to make electric cars.

On Wednesday, the Director of the company, Uttam Basu, said, ” Electric cars are the future. I have been planning to make it in the factory since 2018.” Then an MoU was signed with a Chinese company and the technical evaluation was also done. But the process was not done due to various reasons including Corona.

Since the beginning of this year, the company has been talking to some European EV companies to reopen the factory and make electric vehicles. Now they possibly signed an MoU with a European EV company. Around 600 crores will be the estimated investing amount by the joint venture, according to the HM director, Uttam Basu. Although the exact figures did not reveal yet.

The Goal of this Project by Hindustan Motors

The director of Hindmotors, Uttam Basu, said they will make two-wheeler first and then enter the four-wheeler segment later. If the plan will execute properly then the first two-wheeled electric vehicle will be built in Uttarpara, West Bengal.

Why it may Success?

The director hopes that HM’s offer may be attractive to the European company for mainly 5 reasons.

  1. The overall car factory or plant is under one roof with other important centers like press shop, stamping, forging, foundry, etc. already established. So, no need to build a new plant or just make some modifications to the old factory.
  2. The convenience of building easy research and engineering infrastructure. The cost of production will be much less than in Europe.
  3. The opportunity to easily scrutinize the old dealer infrastructure of the iconic company.
  4. Government Incentives may be given to make electric vehicles in India.
  5. Last but not the least, the transportation infrastructure is very very well for the company.

Interesting Factor about HM

In the eighties, HM sold the iconic car, Ambassador, 24,000 units annually, but in the past decade, the number reduced to only 2,500 units.

The factory was capable of producing 1,500 cars a month, but at the time of closure, it was just 150. Five years back, HM reported that they had sold the Ambassador brand to the PSA group for Rs 80 crore.

The lack of technological innovation and later the presence of Maruti-Suzuki and other domestic & foreign car companies put HM backward in the competition.

  1. When did the company Hindustan Motors come into existence?

    In the year 1948.

  2. Where is the factory of Hindustan Motor?

    The factory is present at Uttarpara, Hoogly. It is about 15 km away from Kolkata.

  3. Currently, HM produces which car?

    Currently produces Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, and CNG & LPG variants) in the passenger car segment and light commercial vehicle 1-tonne payload mini-truck HM Winner (2000 cc diesel and CNG).

Conclusion

The busy picture, the busy road of the past may return when the decade-old factory opens again. Many people will get jobs.

Hindmotor, which has completed many paths by making old conventional oil engine cars, now stands at the new bend of the journey hoping that it will get a life again.

The electric Ambassador may likely make a comeback in a new avatar soon.

What are your thoughts, write in the comment box below.

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