Zigwheels Home

Hindustan Motors open to talks with other auto-makers for Chennai plant

by ET Bureau Photography: Kunal Khadse Posted on 17 Jan 20134,211 Views Comments

Hindustan Motors is now discussing with other auto-makers to share the Chennai plant facility which the company had set up to manufacture Mitsubishi's Sedia Lancer, Pajero and Outlander

 

 

Mitsubishi Outlander

 

 

C K Birla auto maker Hindustan Motors (HM) is open to talks with other auto-makers for utilising the surplus capacity at its Chennai plant which was demerged recently. "We are open to talks with other automakers as we have substantial capacity at the Chennai plant. After the demerger, HM will particularly focus on the SUV segment," Uttam Bose, managing director & CEO, HM, told media persons last night.

 

The company set up the Chennai plant to manufacture Mitsubishi's sedan Lancer in technical collaboration with the Japanese car maker. Presently, the Chennai plant sells nearly 2,000 units of SUVs, namely Pajero and Outlander, compared to its installed capacity of 24,000 units per annum. Early January 2013, HM demerged the Chennai plant and transferred to its subsidiary HM Finance Corporation.

 

Elaborating further, Bose said that the Chennai plant was making profits adding that the Uttarpara plant in West Bengal which manufactures the traditional Ambassador car would break even by March this year. He said that this would be made possible by increasing margins and reducing costs. HM plans to sell around 5,000 units of cars and SUV during the current fiscal.

 

Post Your Comment

Do you like this story?

Hindustan Motors seeks sharholder nod for T'vallur plant sale

by ETAuto.com

The Tiruvallur plant is up for sale or lease in...

Isuzu starts local production of MU-7 SUV

by Words & Photography: Arun Mohan Nadar

By locally assembling the MU-7, Isuzu has been...

Hindustan Motors launches Ambassador Encore under Rs 5 lakh

by Piyush Gulati

The new Ambassador Encore comes with a BS...


 
SPECIAL COVERAGE

Datsun Go: Special Coverage

With the Go the Datsun brand once again comes to life and is here to make its place in the...

Hyundai Xcent: Special Coverage

Hyundai has launched its compact sedan, the Xcent, at a smashing starting price of Rs 4.66 lakh...

 

Read Next Story