Hindustan Motors of CK Birla Group is steering on a high spirit as the business has boomed tremendously. With a new CEO to be appointed to oversee the operations of the company, the production of Ambassador to be continued amidst huge profit share. In the meantime, Hindustan Motors is not in trouble to seek finance from the apex company. Already the net worth erosion has surpassed 50% in all these four years. This peak performance will be conveyed to BIFR to differentiate the substance of the case. (BIFR, a government agency looks after the revival or the closure of the sick companies).
There has been no thought of wiping out the good selling Ambassador, said the company’s Chairman. The net worth erosion has been reported to the National Stock Exchange(which has become mandatory disclosure). The Company Board has approved the resignation of the MD. Ever since Maruti came to the fore in the Indian car market, Hindustan Motors has been on the declining phase. Another factor that made the company slid from its supremacy was the invasion of foreign car makers offering variety and quality.