The Hindu Business Line : Ambassador sales drop on tightening of car finance

Kolkata, Dec. 4 Non-availability of car finance led to about 60-70 per cent drop in the sale of Ambassador cars in November, according to Mr R. Santhanam, Managing Director, Hindustan Motors.

The drop was around 50 per cent during the period July-October as compared to the same period last year. Out of a total capacity of 24,000 cars, the company manufactured 11,000 Ambassadors last year at its Uttarpara plant in West Bengal.

Addressing presspersons on the sidelines of the launching of its mini truck Winner by the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, here on Tuesday, Mr Santhanam said, “Retail car finance, which was difficult over the last three months, declined to almost nil in the month of November.” The Ambassador cars were sold mainly to the Government and for taxis, he said adding that the latter depended heavily on car finance from banks and other financing institutions.

The recent monetary initiatives by the Centre should bring in some relief leading to higher car financing, he said, adding the company would also look into different cost cutting measures including improvement in processes and adoption of modern manufacturing processes. The factory employs 2,850 people.

The unutilised capacity at the Uttarpara factory would be engaged in assembling 1,000 new mini trucks annually in collaboration with its Chinese partner Shandong Shifeng, Mr Santhanam said. The 2.3-tonne GVW mini truck HM-Shifeng Winner is the first new vehicle by HM in 28 years.

Two new variants of the vehicle would also be launched soon, he said, adding that a CNG version would be launched in the next 6-8 weeks to specially cater to the Delhi market. The joint venture with the Chinese counterpart was, however, purely on a supply and assemble basis without any equity sharing, he said.

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