The famous iconic Ambassador car by Hindustan Motors is planning on establishing itself again in the Indian market, but this time as an electric vehicle manufacturer.
The manufacturer is now planning a partnership with a European electric vehicle manufacturer to produce electric scooters in its plant, reports the leading newspaper.
The company plans on expanding its operations to make electric cars, as per the report.
Based on the reports, the two companies signed an MoU to officiate the partnership.
The company will initially produce electric two-wheelers. The collaboration on the upcoming project will be 51:49 ratio giving the controlling stakes to Hindustan Motors. The new model will be manufactured at Hindustan Motors’ Chennai manufacturing plant, which is currently owned by HMFCI.
The last Ambassador from Hindustan Motors’ Uttarpara plant was delivered in September 2014. The manufacturer was deeply 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 Indian roads for many years. But when cheaper and more affordable cars like the Maruti 800 and other models began to appear in the country, Hindustan Motors Ambassador began to face challenge.
