Calcutta, Aug. 21: Hindustan Motors (HM) — the makers of Ambassador — is looking to increase its revenues by selling components to other automobile companies in India and abroad.
HM has entered into agreements with Ford and General Motors in India for supply of engines and transmissions.
Chairman C. K. Birla said: “Our earnings from supply of components should be in the range of Rs 100-150 crore next year when we start supplying to General Motors as well.”
HM was in talks with several other companies in the country and abroad for similar tie-ups, its chairman said but refused to disclose names.
HM is also expecting sales to improve this year, thanks to the launch of a couple of variants of the Ambassador and a 1.8-litre version of the Mitsubishi Lancer. “We have rolled out a new version of the Ambassador a couple of days ago, and another is being introduced by the end of this year.
“A new version of Lancer, too, should hit the roads by the end of 2003,” Birla told shareholders at HM’s 61st annual general meeting here today. The new model of the Ambassador that was launched in Delhi a few days ago would hit the roads of Calcutta next week, he added.
HM hopes the new models would help revive appetite for the Amby that has fallen out of favour with private users. HM’s sales fell 10 per cent last year, but it still managed to cut losses by reducing costs. HM posted a net loss of Rs 26.74 crore on an income of Rs 1,074.73 crore.
HM has set up a new division recently — Remote Services Division — that specialises in digital designs and engineering drawings. “Some 30-odd engineers are employed in the division at present, and it could be a key driver of growth in future,” Birla said.