Hindustan Motors enters the small car segment

Hindustan Motors Ltd., the established name in the Indian auto company or better known as the creator of the lovely 'Amby' seen on roads since decades is all set to bring its first small car to be unveiled this year in July.

As per a close source related to the development, the concept car of the new hatchback will be exhibited to the dealers to gather their response on the small car which is scheduled in the first week of February.

The source also revealed that the new small car will be produced on Ambassador platform but will be available in a trimmed version. It is also being learnt that the new car model will come in both hatchback and saloon versions. The hatchback will mark HM's first entry in the small car segment. It will be produced in the automobile's production unit at Uttarpara, West Bengal. The source revealed an important thing that the new small car will be less costlier than Ambassador due to the new wagon's trimmed length as it will extract less excise duty.

The company's manufacturing unit at Uttarpara has unutilised production capacity of 45,000 units yearly which can be used to build the new car. It is also being learnt that currently the company is rolling out almost 700-800 car models of Ambassador every month. The surplus land in the manufacturing unit at Uttarpara can be utilized for alternative purposes but it is stalled for some time.

HM was earlier allowed by the Indian government to use 314 acres of the land at Uttarpara project site for alternative usage. As per the approval, HM joined hands with Sriram group for commencing the work an IT park, auto mobile ancillaries cluster and also township at Uttarapara. As per the report the company will begin the work in some time.

HM has been witnessing a low in terms of profits from a long time but it is sure to turn the tables in its favour.

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