Hindustan Motors seeks to develop surplus property

HM has sought permission to develop surplus property at its ailing West Bengal plant.

Hindustan Motors Ltd, India's oldest car maker, has sought permission of local authorities to develop its surplus property at an ailing plant in West Bengal, an industry source said.

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The maker of Lancer sedan, using technology from Japan's Mitsubishi Motor Corp, could possibly build residential apartments on its sprawling 743 acre (300.7 hectare) at its Uttarpara plant on the outskirts of Kolkata, the source said.

A company spokeswoman declined comment.

The plant, which now makes the venerable Ambassador or Morris Oxford and utility vehicles, has been bleeding the company.

Losses at the unit were mainly responsible for pushing Hindustan Motors into the red in the past two fiscal years, although the company posted a profit in the past quarter ended December 31.

A leader in cars until the mid-1980s, Hindustan Motors' market share has slid in the face of competition from new companies offering more contemporary products.

Hindustan Motors also has plants at Pithampur in Madhya Pradesh that makes engines and transmissions and Hosur in Tamil Nadu, which makes heavy-duty transmissions.

Its plant on the outskirts of Chennai makes makes the Lancer and Pajero sports utility vehicles.