In both cases the CK Birla Group would remain the main promoter. The company had in January decided to demerge and transfer its Chennai car factory to a wholly-owned subsidiary, Hindustan Motor Finance Corporation.
Hindustan Motors may now be rechristened Hindustan Motors Bengal.
The company is developing a sub-4 metre version of the Ambassador, which will cost less due to lower tax rates, and is expected in 2014.
"The new car will be cheaper than the Ambassador because of its smaller length, which will attract less excise duty. However, its name is yet to be finalised," Bose said. "This year we have projected a growth of 26% and we should be able to achieve that. With the new car our sales will increase further."
Currently Hindustan Motors does contract manufacturing for companies such as Mitsubishi and Isuzu at its Chennai factory, which has an annual installed capacity of 24,000 units.