Intending to enter the EV market with fresh look, Hindustan Motors (HM) has plans to launch an electric two-wheeler next year in a joint venture (JV) with its European partner.
The HM’s JV could also consider making electric four-wheelers later.
HM’s JV will employ about 400 people when it begins commercial production of its battery-powered models.
Both the companies are currently studying their financial audit, which is expected to start in July and will take two months, after which the technical aspects of the joint venture will be reviewed, which will take another month, commented Hindustan Motors Director Uttam Bose.
After that, HM’s JV will decide on the structuring of the investment and the new company will be formed, and the whole process is expected to be completed by February 15.
Once the joint venture is officially established, two more quarters will be required to begin piloting the project.
And the final product from the JV is likely to be launched at the end of the next financial year. “After two years of commercialization of the two-wheeler project, a decision will be made to produce four-wheeled electric vehicles,” Bose said.
HM’s Uttarpara plant will also need to be upgraded as some control systems as well as electronic equipment and software need to be replaced.
The company closed the plant in 2014 due to a lack of demand for Ambassador cars.
HM subsequently sold the iconic brand to French car manufacturer Peugeot ₹80 crores.
In addition, HM sold about 314 acres of land at the Uttarpara plant for alternative use after obtaining approval from the West Bengal government, after which the plot was sold to a developer. “Hindustan Motors is now profitable and a completely debt-free company,” Bose said.
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