India’s oldest car manufacturer Hindustan Motors has announced its decision to stop production at its Uttarpara (West Begal) manufacturing facility. Low productivity and shortage in demand are the reasons cited by the carmaker for the move.
In a letter to the Bombay Stock Exchange, the automaker has stated that work at its production facility has been halted in order to ensure that it doesn’t lose money than it already has. It further stated that the move will enable the carmaker to plan ahead for a revival strategy.
The carmaker had been operating in India since 1942, manufacturing the iconic Ambassador car model which was an favorite for bureaucrats and politicians.
The annual sales of the carmaker had declined to less than 2,000 units due to lack of any major upgradation of the car model in terms of design and the increase in competition from global automobile players.