Indian automobile maker Hindustan Motors is reported to be in talks with international firms for a joint venture (JV).
The company has been reeling under losses and low sales due to higher demand for foreign car makers. HM which manufactured the iconic Ambassador car, had recently divested their Chennai plant to associate firm Hindustan Motors Finance Corporation.
“We are pinning high hopes on the divestment of the Chennai plant as a part of restructuring strategy,” Uttam Bose, MD and CEO of the automobile maker reportedly told agencies. He added that they were in talks with many international companies.
The Indian passenger car market ended Fy14 on a damp note with most high volume producers such as Maruti, Hyundai and Tata Motors among others reporting declining numbers. The recent excise cuts announced in the interim Budget provided little respite to car makers as passenger vehicles for the period from April-February 2014 saw a decline of -5.91 per cent.
“Talks with the international companies are in an advanced stage and something will fructify definitely,” Bose reportedly said.
Bose said that the company was keen to increase joint venture partnerships with the selected company which would start manufacturing activity there. Although he did not give a time frame, Bose said something would crystallise within this financial year. The Chennai plant manufactures cars under licence from Mitsubishi Motors of Japan.