In a market where even the likes of Tata and Chevrolet are struggling to break even, it is a no brainer that Hindustan Motors has been finding it really hard to even keep the setup afloat. The good part is, the company is rolling out a revival plan that will hopefully see a change in their fortunes.
The slowdown in the economy has taken its toll on one of India’s oldest car manufacturer. Addressing the media, company MD & CEO Uttam Bose said they had operational challenges in terms of cash flow due to poor sales and also added it has become very difficult to manage daily operations.
An elongated AGM was held and a few details like demerging the Chennai and Uttarpara operations as part of the restructuring plans were revealed. HM is also seeking strategic investors for both business units confirmed Mr.Bose. The review period of 18 months beginning April 2012 and ending September 2013, revealed HM, incurred a loss of Rs 71.20 crore as compared to a loss of Rs 29.96 crore in FY 2011-12.
Adding to their woes is the fact that their once loyal client, the Indian Government, is now opting for modern cars. It will be unfair to blame the government as the legendary Ambassador that is on sale today is almost the same as it was five decades ago barring a few additions.
In their era both the Ambassador and the Contessa were desirable cars, but lack of innovation and upgrades meant they lost out to competition. It is nice to know that company is looking on a revival plan, let us hope it also includes launching a couple of new products.
Source : Economic Times