Due to some legal issues Mitsubishi Motors has dropped its plan to buy out the Chennai manufacturing plant of the Hindustan Motors Limited which was up for sale for an amount of INR 150 Crore.
Hindustan Motors currently has two facilities, one at Uttarpara in West Bengal and Tiruvallur plant in Tamil Nadu. While in Uttarpara the company manufactures the Ambassador and the light commercial vehicle- Winner while at the Tiruvallur plant, the company manufactures Pajero Sport, Cedia, Outlander and Montero with a technical collaboration with Japanese automaker Mitsubishi Motors.
According to the company, "In the present day and circumstances, it is imperative to induct a suitable investor or a global leader in the respective businesses for viability in the long term and therefore, the company has been looking at suitable proposals for Chennai Car Plant."
Hindustan Motors is going through a rough patch and is believed to have put the Tiruvallur plant up for sale in order to acquire some fresh funds and investments. These funds will help the company to improve the performance of its other manufacturing facilities in Madhya Pradesh and in West Bengal.