Hind Motors to launch LPG-based Ambassador

Hindustan Motors (HM), the first Indian car company, is planning to launch cars on its Ambassador platform with sequential liquefied petroleum gas (LPG) injection system within three months.

The new car will give the owner the choice of either using LPG  or petrol for fuel. The LPG injection systems are a widely used form of technology and the company would not have to make any significant investments in upgrading its existing platform, said  Moloy Chowdhury, executive vice president, HM.

The demand for vehicles with alternative fuel technology was on the rise for both economic and environmental reasons, and the production and marketing of the new car would be shaped by market
demands, he said. The cars would be priced slightly higher than the existing models. Chowdhury, however, refused to divulge the pricing details.

In another move, HM launched the Ambassador air-conditioned(AC) meter taxis in Kolkata in response to users' requirements. A section of the passengers were felt to be looking for AC comfort within an affordable range, said Chowdhury. The state transport department has issued permits for 300 such taxis. The city will have a separate counter for AC taxis at the airport and railway stations soon. Currently, around 20,000 non-AC taxis ply in Kolkata.

The first batch of taxis will be priced at Rs 3.79 lakh ex-showroom as against the non-AC taxi price of Rs 3.6 lakh. The fare will be 25% more than the non-AC taxi fare. The car is expected to give a mileage of 14- 16 kilometers per litre on city roads, Chowdhury said.

HM currently produces over 1,000 units of Ambassador cars at its Uttarpara facility near Kolkata running at one-third its full capacity. This was primarily because of lack of demand, admitted Chowdhury. The company targets to sell around 12,500 units by the end of this fiscal.

Of the four business verticals operating at the Uttarpara plant that includes vehicle manufacture along with automotive forging, stamping and castings, the vehicle segment contributes nearly 90% of the turnover.