HM had divested its Chennai plant to associate company Hindustan Motors Finance Corporation and is currently aligning with various international auto companies to set up a JV with the associate company. Talks are at a very advanced stage and expected to reach a conclusion soon.
This JV with international auto players will allow HM to bring to an end their financial woes while at the same time revive their own manufacturing activity at their Chennai plant. Though no time frame was revealed for finalization of these talks, it was estimated that a common consensus could be reached by the end of this financial year.
Earlier HM had an agreement with Mitsubishi, though the latter turned down their offer to purchase the plant. The company is instead focusing on introducing a new range of vehicles in the country such as the Mirage hatchback, Attrage sedan and Pajero Sport Automatic all of which will be produced from the HM Chennai plant.
HM on their part have had to discontinue production of Cedia and Outlander due to mounting losses but continue to produce the Ambassador from the Uttarpara plant in West Bengal which has come in with a BSVI compliant motor.