Hindustan Motors to come with a new small car

With the increase in demands of small cars all the automajors are planning to increase their market share by new introductions in the market. Indian automobile manufacturing company, Hindustan Motors is also initiating to come with its new small car to show its dominance.

Hindustan Motors is now planning to launch a hatchback model and is in talks with four or five European vendors for design, technology and engines for this hatchback. Recently, Hindustan Motors has announced to bring in four new variants of its iconic car Ambassador by early next year. Hindustan Motors is planning to reduce the overall size and structures of the past Ambassador and make it small from the present models of Amby in order to reduce the excise duty. Hindustan Motors is presently taking feedback for its new Ambassador on its acebook page.

HM is looking ahead to double the total number of dealership to 140 dealerships by next two years. They would be increasing the dealership networks in tier 2 and tier 3 cities. The senior officials of Hindustan Motors have stated that they would be launching the new Ambassador by March 2011. The New Ambassador would come between 1500cc – 2000cc. Last year Hindustan Motors has sold around 8,000 units and are now expecting sale of 10,000 units by the end of this year. Hindustan Motors has got its manufacturing facility at Thiruvallur, Chennai and has production capacity of 12,000 but currently it is producing 5,000 units due to low demand. HM is expecting to manufacture 24,000 units by 2012.

Hindustan Motors has also announced to invest Rs. 1.6 billion in order to increase its market stake. Hindustan Motors confiremed to NSE (National Stock Exchange) that they are planning to fund the HM exports by alloting shares of its another subsidiary unit Avtec Ltd.

Hindustan Motors is a recognised Indian automobile company and its iconic car passenger car Ambassador has ruled Indian Automobile industry since five decades. Hindustan Motors is also collaborated with Mitsubishi Motors,Japan and deals with mid sized and premium segment cars like Mitsubishi Lancer, Mitsubishi Cedia, Mitsubishi Pajero, Mitsubishi Montero and Mitsubishi Outlander in domestic market.

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