The kumbakarnan of Indian Auto Industry finally wakes up. After 25 of years of long sleep, Hindustan Motors plans to introduce a new model in October to tap the festive demand. Hindustan’s only model Ambassador popularly called as Amby declining sales forces Hindustan Motors to launch the new model. Hindustan sells around 12000 units of Amby every year when Maruti Suzuki is selling 13000 units of alto every month.“To cope with competition, we have to launch new products. We have been planning this (launch) for quite some time,” Santhanam said. Hindustan previous launch was the contessa in 1980’s and it was officially stopped in 2003. There were no new launches during the period. In 2006, Hindustan Motor said it plans to expand its product range.Hindustan Motors also started preparing a comprehensive plan to revive the Uttarpara factory. The factory’s installed capacity is 25,000 vehicles but Hindustan produces only 12,000 Ambassadors a year.
Coming back to the Hindustan’s new model,the company says it has developed the new model on its own with design inputs from others. Also,the model is not likely to be part of Hindustan’s alliance with Mitsubishi. Santhanam, managing director of HM says “The company has, on its own, developed a new platform for the car. Though we have taken some technical inputs from others, the design is entirely our own,” said. The prototype of the car is ready and Hindustan has been testing the car extensively at the Uttarpara factory.
As we reported earlier Hindustan is also working on an auto gas or LPG version of the Ambassador before the Pujas. Hindustan will also introduce the Mitsubishi SUV Outlander by September 2008.