How The iconic Hindustan Motors ambassador coming back to India in Electric Vehicle

Hindustan Motors, famous for its iconic Ambassador cars in India, is planning to re-establish itself in the Indian market, but this time as an electric vehicle manufacturer. As per a Times of India report, the manufacturer is now planning to partner with a European electric vehicle maker to manufacture electric scooters at its plant. Also, according to a report by HT Bangla, the company is planning to expand its operations to manufacture electric cars. Based on the reports, both the companies signed a Memorandum of Understanding to execute the partnership.

The entire process of partnership will be completed in about three months. The report says that the company will initially produce electric two-wheelers. The report also said that collaboration on the upcoming project will be based on a 51:49 ratio, giving Hindustan Motors a controlling stake.

The new model will be manufactured at Hindustan Motors’ Chennai manufacturing plant, which is currently owned by HMFCI. HMFCI is part of the CK Birla Group.

Hindustan Motors’ Chennai plant used to manufacture Mitsubishi cars, while the Uttarpara plant manufactured Ambassador cars. The last Ambassador from Hindustan Motors’ Uttarpara plant was delivered in September 2014. The manufacturer was in debt, demand was low, and sales were poor, so the brand was sold to Groupe PSA.

Hindustan Motors had a 75% market share in the Indian automobile market in the 1970s. It used to produce the iconic Ambassador car, which ruled the Indian roads for several years before it was phased out. When cheaper and more affordable cars like the Maruti 800 and other models started arriving in the country, the Hindustan Motors Ambassador faced a steel challenge.

It also could not keep pace with the rapidly changing technology in the automotive industry, resulting in declining sales and, eventually, closure. In 2017, Groupe PSA bought Peugeot A and Ambassador brands from the Hindustan Motors-owned Birla Group.