Strong appreciation of the yen and depreciation of the rupee hit the margins of Hindustan Motors Ltd (HM) even as operations of its Chennai plant were adversely affected, a top company official said today.
Operations at the Chennai car plant, which manufactures Lancer, Cedia, Pajero and Outlander models, suffered because of lower volumes caused by adverse foreign exchange rates and high interest rates, company's Chairman C K Birla said in his speech to shareholders at HM's annual general meeting here.
He said the company has asked Japan's Mitsubishi Corp, with which it has a technological agreement, to reduce the kit prices in view of the adverse exchange rates.
Birla said the company is working on the introduction of BS-IV diesel engines for its Ambassador cars for the taxi segment.
The company hopes to launch the BS-IV diesel engines by the end of the financial year.
Birla said the company was making all efforts to return to the growth path as soon as possible. "I know it is taking a long time", he said.
Last year, the company sold 4,000 cars including 2,500 Ambassador models.
