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Hindustan Motors Is Making A Comeback, And It's Not With The Ambassador!

Modified On May 27, 2022 12:55 PM By Bernard Mascarenhas

Will manufacture electric two-wheelers in partnership with a European firm

Brewing within the storm of an electric revolution in India is the re-birth of many iconic brands. As we witness a paradigm shift within the automotive universe, Hindustan Motors has found it apt to make a comeback, albeit, this time as an exclusive electric vehicle (EV) manufacturer. 

Known for its iconic models like Ambassador and Contessa, Hindustan Motors has a production facility in West Bengal lying defunct ever since it rolled out the last unit of Ambassador in 2014. The firm now states that the Uttarpara plant, which was an integrated plant, can be remodelled to produce EVs. 

Promptly, Hindustan Motors has joined hands with a European EV company, whose name is yet unspecified, by signing a MoU to jointly manufacture electric two-wheelers, followed by electric cars.

As per the proposed joint venture (JV), Hindustan Motors would provide land and funds, while the European company would offer technology and funds. This JV will also have access to HM's distribution network across the country. The initial plan was reportedly to collaborate with a Chinese firm. However, the board decided to join forces with a European firm instead. 

While both parties are currently discussing the equity structure of this deal, a statement from the erstwhile maker of Ambassador mentions that an estimated investment of around Rs 600 crores will be made by this proposed joint venture, although the exact figures would emerge only a year later. 

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More insights into this venture are expected to be revealed in the coming months, while a definitive agreement between the two parties would be signed in another year or so. This implies technical specifications of the new electric offerings can be expected at the earliest by 2024 and the upcoming electric two-wheeler might be a retro-style e-scooter. 

Compared to e-bikes, electric scooters have a greater demand and are relatively easier to develop as they do not command as much range as e-motorcycles. Expect the production-spec version to enter the market by early 2025. This definitely is a long timeline, but, with Hindustan Motors being a household name, it might still not be too little too late.

What’s more, LML has also announced its comeback into the Indian market as a manufacturer of electric two-wheelers, as we reported last month.

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Bernard Mascarenhas

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