Hindustan Motors is trying to give the Ambassador a new lease of life. It is in talks with foreign manufacturers to source a new diesel engine to replace the existing 1.5L diesel for its good old Amby. Its 2.0L diesel is undergoing tests at ARAI. However, its petrol, CNG and LPG engines have been upgraded to meet Bharat Stage-4 standards. We suggest that HM look at the Logan’s robust 1.5L engine as it will do the duty best in the Amby.
HM is planning to monetize some of its non-core businesses to strengthen itself financially. HM is looking at equity partnership with Mitsubishi. Replying to a query, an HM official said “plans have been there but we cannot specify any timelines”. He further added that Mitsubishi will have a ‘couple of new launches’ during this financial year. The cars in question are the Evolution X and Pajero Sport. The number of dealers will be increased to 50 during FY 2010-11 from the current 36.
Hindustan Motors recently reported itself to the BIFR (Board for Industrial & Financial Reconstruction), as its net worth eroded more than 50% of its peak net worth during the immediately preceding four years. Its losses mounted to Rs. 42.85 crores in the year that ended on March 31, 2010. Losses during the previous year stood at Rs. 37.78 crores. HM says even though its networth has gone down, its flagship Ambassador’s production will not be affected. The company expects to sell around 1,000 Ambassadors monthly during this year. With the new plans HM says it is ‘confident’ of making profits this year.
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