Crisis grips Hindustan Motors, Amby sales drops

Crisis grips Hindustan Motors, Amby sales drops
PTI
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First Published: Sun, Nov 23 2008. 02 42 PM IST
Updated: Sun, Nov 23 2008. 02 42 PM IST
Kolkata: The economic turmoil has cast its spell on country’s oldest automobile company Hindustan Motors, with sales of Ambassador cars dipping by more than 33% in the past few months.
A company official said that Amby sales which were in the region of 900 cars per month have come down to 600 units now. “The situation is not very good,” the official added.
The official further said that though the company was not thinking of any move like a temporary shutdown of the plant for the moment some ways would have to be found to combat the crisis if the situation continued for long.
He also dismissed any chance of slasing prices, saying HM would not go for any price cut to boost sales of Amby, he said.
The company manufactures Amby at the Uttarpara plant in West Bengal.
The official said operations at the plant were still viable, thanks to revenue streams.
The company manufactures and part supplies auto parts like forgings, castings and stampings for other automobile firms like Ford, General Motors and Hyundai.
He said though demand for auto components from these companies had also slackened due to the downturn, the impact on Hindustan Motors was minimal.
“We are not feeling the heat now,” the official said.
Meanwhile, the company was gearing up to launch a new commercial vehicle on 2 December.
The new vehicle would be manufactured on a new platform and would be in the mini-truck category.
Asked about the status of the proposed alternative use of the surplus land at the Uttarpara plant, the official said that construction had not started as yet. “Survey and filling up of low lands is being done now,” he said.
The West Bengal government allowed HM for alternative use of 314 acres of surplus land for setting up a township and and IT park.
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First Published: Sun, Nov 23 2008. 02 42 PM IST