Hindustan Motors, who is famous in India because of its iconic ambassador car, plans to build itself in the Indian market, but this time as an electric vehicle manufacturer. The manufacturer is now planning a partnership with European electric vehicle manufacturers to produce electric scooters in its factory, reporting The Times of India. In addition, the company plans to expand its operations to make electric cars, according to reports by HT Bangla. Based on the report, the two companies signed an MoU to lead the partnership.

The whole partnership process will be completed in about three months. The report said that the company would initially produce electricity vehicles. This report also said that collaboration on future projects will be based on the ratio of 51:49, providing controllers for Hindustan motorcycles. This new model will be produced at the Hindustan Motors’ Chennai factory, which is currently owned by HMFCI. HMFCI is part of CK Birla Group.

The Chennai Motor Hindustan factory is used to produce Mitsubishi cars, while the Uttarpara factory is used to produce ambassador cars. The last ambassador of the Uttarpara Hindustan Motors factory was sent in September 2014. The manufacturer is very debt, low demand, and poor sales, so the brand is sold to Groupe PSA.

Hindustan Motors had 75% market share in the Indian car market in the 1970s. Previously produced an icon ambassador, which ruled Jalan India for many years before being deleted. When cars are cheaper and more affordable such as Maruti 800 and other models began to appear in the country, the Hindustan Motor Ambassador began to face steel challenges.

It also cannot follow technology that changes quickly in the automotive industry, which results in a decline in sales and, finally, termination. In 2017, Groupe PSA bought Peugeot A and the Ambassador brand from Birla Group, which has Hindustan Motors.