The Amby was also heavy, sluggish and a fuel guzzler despite getting new modern engines. It continued to be popular with Government officers and a few lovers of antiques but young buyers wanted modern cars that were sleeker, quicker, more comfortable reliable and economical to run. It was not expensive but despite all efforts the sales had slipped to less than 200 a month that made production unviable
The cos. has already spent Rs200 cr equally on setting up two new plants in Bangalore and Indore respectively that will get operational in the next three months.
The Ambassador, the brand icon of the license Raj will stop rolling out of the Uttarpara plant in West Bengal. The plant was producing a little less than 150 vehicles, a number that was hardly enough to make it commercially feasible. In a notice to stock exchanges, the Hindustan Motors said: “The Company has declared suspension of work at its Uttarpara Plant with effect from 6.00 AM of May 24, 2014. The Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities,” the statement said.
The Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, critical shortage of funds.
Honda Cars India Limited (HCIL) expects to have a ‘good double digit growth’ in FY 14-15 backed by new volume products – Mobilio and Jazz, said Jnaneswar Sen, Senior Vice President, and Sales & Marketing. Last year the company sold 1.3 lakh units recording a 37% percent growth. The company expects to have ' annual sales of 3 lakh units by 2017.
Hero Splendor continues to remain highest selling two-wheelers in India in April'14 at 179087 units compared to 14894 units in the same month previous year recording a growth of 20%. While Honda Activa (scooter) achieved one point gain to become second largest selling two-wheeler at 145719 units in April 2014 pushing Hero Passion to third position. While Bajaj Discover suffered the biggest loss and declined to 7th spot in April 2014 at 60,331 units compared to 4th spot at 101345 units in the same month previous year.
As the country heads towards a new Government, automotive industry pins hope of revival with varied set of expectations. On the top of the beleaguered automotive industry’s wish-list stands - continuation of the current excise duty, boosting infrastructure projects, GST implementation, labour reform and creation of AutoZone in every town.
Spurning away from traditional family jewellery business, Surinder Kapur, Chairman, Sona Group, ventured into auto component manufacturing in 1988.
I tell my management is to go ahead and look at small-ticket acquisitions. There are a lot small companies in the US, Europe and also in South East Asia.
Starting with a modest Rs 7 crore revenue in the first year of business to achieving Rs 4,700 crore revenue in FY14, he has seen many ups and downs. Getting candid in an interview with ET’s Nabeel A Khan, he admits it was not right decision to make the big acquisition of Sona BLW. In future, he said Sona would eye smaller acquisitions. However, he is glad to have turned around the company and is now appointing a German CEO. Kapur expects a rebound in the Indian auto industry in the second half of this year and plans to kick start an invest Rs 500 crore in the next three years which includes Rs 150 crore investment in setting up a new forging plant in Bawal near Gurgaon.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon