Hindustan Motors, manufacturer of the iconic Indian car, the Ambassador, is now heading towards a new business plan. The company is now planning to become an automobile component manufacturer.
The company’s Chairman, C.K. Birla said, “The key to our revival will be our components business comprising forgings, castings, and stampings produced at our Uttarpara factory near Kolkata.” He also added that he feels tremendous growth opportunities in the auto component business.
At present HM’s component business accounts for about 10% and now with the revised plan, the company desires to jump to about 30-40% of the total share in the next two quarters.
According to the company’s official, Hindustan Motors will need about six months to settle itself completely into this business. It expects a high growth in the next financial year.
The company was making good profits till the Ambassador was a hot choice among Indian consumers. Gradually, when the car was crossed over with a number of new, advanced and exciting car models, the worth of Ambassador was lost.
Even today, the company is continuously making improvements in its age old Ambassador. However, it has no plans to move away from its iconic car but it only desires to add more profits to its business. Therefore, a shift to auto component business is a significant move.