Hindustan Motors expects a turnaround of its fortunes with the small car

Ailing Indian automaker Hindustan Motors is all geared up for the launch of its latest small car offering, expected in the month of July. Sources at Hindustan Motors revealed that the prototype of the various variants will be first displayed to the dealers in order to get their feedback on the product, in the initial week. The new car is built on the iconic Ambassador platform, but will be a tad smaller length-wise. The latest offering will be available in both the sedan and the hatchback variants. This will in effect be the start of a new era for Hindustan Motors, which never had any presence in the hatchback segment.

The new car will be assembled at Hindustan Motors West Bengal’s plant at Uttarpara. The decision pertaining to the name of the car is still pending. The sources close to the development revealed that the car will cost less than the Ambassador due to the sheer consideration of the size and hence will attract a lesser duty in lieu of excise. The plant at Uttarpara has an unutilized capacity to the tune of 45,000 vehicles per year, which will come in handy for the production of the new car.

In a question relating to the development of the surplus land for alternative usage, the source said that the project was in a hibernating mode.

The government has given a directive to Hindustan Motors earlier allowing it to use 314 acres of land at the project site for alternative purposes. Based on this directive, Hindustan Motors entered in to a JV with Sri Ram group for an auto ancillary’s cluster, IT Park and a township at the plant site of Uttarpara.

The source further said that the work at the proposed site would commence shortly.

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