CK Birla-owned Hindustan Motors Ltd is expecting to complete due diligence for its proposed electric two-wheeler project with a foreign partner by the middle of October, a company official said on Monday.
HM Director Uttam Bose said the “structure of the joint venture (JV) will be finalised” during the due diligence process that has been initiated by both companies.
The company, which once manufactured the iconic ‘Ambassador’ car, has tied up with a European entity to make electric two-wheelers by next financial year.
“The due diligence process is expected to be completed by the middle of October,” Bose said.
The combined investment for the electric vehicle (EV) project will be around Rs 600 crore, he said, adding that “this will be the initial capital expenditure by both the companies”.
The JV entity is expected to launch the electric two-wheeler by the end of the next financial year, Bose said.
After the formation of the JV, around six months will be required to start a pilot run for the project, he said.
The project will come up at the Uttarpara plant in West Bengal, where ‘Ambassador’ cars were earlier manufactured.
The company closed down the plant in 2014 due to a “lack of demand” for ‘Ambassador’ cars. The West Bengal government had allowed HM to sell 314 acres of land in the Uttarpara facility for alternative use.
The land parcel had been sold to a real estate developer.