Hindustan Motors, which had closed on Friday at Rs.18.50, opened today at Rs.19 and went on to hit the 5% UC of the day at Rs.19.40, where it now remains frozen.

The sudden interest in this erstwhile maker of the iconic Ambassador car?

News is that the company is making moves to set up a JV with a European partner to make electric tw-wheelers by next year. The company is also exploring the option of graduating to 4-wheelers once the 2-wheelers get established in the market.

The entire process of due diligence, technical aspects, investment structure, all this is expected to completed and new entity to be formed by mid-Feb’23. The product is expected to be on the roads by March’24.

If one may recollect, the company shut down in 2014 due to lack of demand for the Ambassador and sold the brand to French auto company, Peugeot for Rs.80 crore.