Automotive brand, Hindustan Motors Ltd and its European partner have finally completed due diligence for their proposed two-wheeler EV project.
The joint venture is likely to launch the electric vehicles in the next financial year at Hindustan Motors Uttarpara plant in West Bengal.
“The due diligence between HM and the European company is now complete. The name of the foreign partner will be announced shortly, the official of the Indian company commented.
The combined investment for the EV project will initially be around Rs 600 crore, following which the two companies would explore the possibility of entering the electric four-wheeler space.
After the formation of the JV, around six months is required to start a pilot run, he said.
The structure of the JV is being finalized, including the proportion of equity to be held by both partners, the official said.
“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, he said.
The official had earlier said the company paid off most of its liabilities and reduced accumulated losses.
HM shut the plant in 2014 due to a “lack of demand” for its iconic ‘Ambassador’ cars. The West Bengal government had allowed the company to sell 314 acres of land at the facility for alternative use.
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