Hindustan Motors has been hitting the upper circuit for the last 11 trading sessions over the news of its comeback. The shares of the carmaker have climbed 133% in the last month and 187% over the last year. As of 10:00 IST, the stock was trading at ₹ 25.50 per share.
As per the developments, CK Birla Group-owned Hindustan Motors is planning to bring back the two old brands Ambassador and Contessa as EVs. Hind Motor Financial Corporation of India (HMFCI) which owns production facilities of Hindustan Motors and Peugeot, a French carmaker has reportedly signed an MoU to redesign and relaunch the Ambassador – popularly dubbed as the ‘King of Indian roads. Contessa was a premium sedan with plush interiors in its previous version.
As reported by HT Bangla, Hindustan Motors will have a controlling share in the joint venture with a 51% stake and the balance being with Peugeot. The plan is to make a significant mark with the introduction of electronic two-wheelers initially and shift to the production of EV cars later.
Till the 1970s, Hindustan Motors controlled 75% market share in the Indian automobile market. It eventually lost its sheen as cheaper and low-cost alternatives such as Maruti 800 were introduced.
Further, rapid technological changes resulted in decreased sales and subsequent discontinuation. The PSA Group acquired the Ambassador brand from the Birla Group for ₹ 80 crores.
Edited by – Vikalp Mishra
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