India’s oldest automobile manufacturer, Hindustan Motors, is facing problems with its age old mode, Ambassador. The sale of the car has dipped nearly 33 percent in past few months. The company sells 900 units per month but since past few months it has sold only 600 units each month.
The company official declined that Hindustan Motors would shut down its plant for some time though he admitted that the situation is not very good. The company will devise plans to combat the situation in hand. He also dismissed that there may be a price cut to boost the sales in the country.
Hindustan Motors manufactures Ambassador at the Uttarpara plant in West Bengal. It had earlier planned to sell 12500 units this year with its new diesel engine. The new engines shall be compliant with Bharat Stage 2 and Stage 3 emission norms. It is expected to deliver a mileage of 16kmpl against the 11kmpl mileage from the existing diesel engine. HM shall invest Rs. 6 crores towards upgrading its engines to make them BS-3 compliant.