Hindustan Motors (HM) is exploring the possibility of selling electric vehicles (EV) in the overseas markets. The maker of iconic Ambassador was planning to manufacture EV at its Uttarpara plant.
“A memorandum of understanding (MoU) on EV has been signed. The tie-up is for exporting the vehicles at present. Later, assembling may also be considered,” added sources.
In a stock exchange filing on Tuesday, HM said that it has entered into a MoU to extend the EV domain across the border to enhance the production of eco-friendly EVs.
The company, however, did not divulge details on the MoU. On Wednesday, shares of the automaker climbed 9.8% to Rs 18.4 apiece on the BSE. The shares closed on the upper circuit limit. According to the sources, the company is likely to come up with more information about the tie-up in the next few days.
Hindustan Motors, India’s first ever carmaker, had earlier signed an MoU and was in primary discussion for a joint venture with an European auto company involved in the EV segment for manufacturing of electric vehicles.
Initially, the plan is to launch two-wheelers, and then, depending on the success of the project, four-wheelers would be launched.
The crisis-ridden auto maker stopped producing Ambassador cars in 2014 as sales had dwindled. The brand was eventually sold to French automaker Peugeot.