The Hindu Business Line : Hind Motors sees parts biz as growth driver

Kolkata, June 10 Hindustan Motors Ltd (HM) will launch a new vehicle brand that would be manufactured at the company’s Uttarpara factory around Durga Puja this year, according to Mr R. Santhanam, Managing Director of HM.

Addressing a news conference held here on Tuesday to announce the launch of an exchange scheme for Ambassador taxis in Kolkata, Mr Santhanam said that, in a fiercely competitive market, the “engine of growth” of the company would be propelled by a strategy that would combine the introduction of new brands and expansion of its auto components business. Mr Santhanam declined to share further details of the brand.

According to him, the company is already an OEM (original equipment manufacturer) supplier to several companies in India. The volume of castings, forgings and stampings manufactured and sold by the company would only go up in the future. “Our automotive components business is an engine of growth for the company,” he said, adding that HM’s components business could one day generate more revenue that its vehicles business.

HM sells around 1,000 Ambassadors every month. Sixty per cent of these are sold as commercial vehicles while the balance is accounted for by sales to individuals and institutions. With fuel efficiency gaining priority, the company had been working for the last six months on an Ambassador variant that would address the issue.

Having achieved that, HM on Tuesday announced an exchange scheme for taxis in Kolkata whereby any taxi owner can get a benefit of Rs 35,000 while exchanging an old taxi for the new variant. The new Ambassador gives 16 km a litre of diesel as opposed to 11-12 km a litre given by the old Ambassador.

Asked if HM would supply components for the Tata Nano, Mr Moloy Chowdhury, Executive Vice-President of HM, said: “We would love to do so, but when it will actually happen, I cannot say.” He added that talks in this regard had been initiated.

More Stories on : Outlook | Promotions & Offers | Brands | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page