Troubled Hindustan Motors (HM) is pinning hopes on its recent divestment of the Chennai plant and has initiated talks with global automobile firms to set up a joint venture there.
The Chennai plant manufactures cars under licence from Mitsubishi Motors of Japan.
"We are pinning high hopes on the divestment of the Chennai plant as a part of restructuring strategy," managing director and CEO of HM Uttam Bose told PTI.
Recently, HM divested the Chennai plant to an associate company Hindustan Motors Finance Corporation (HMFC).
Bose said that the company was in talks with several international players in the automobile sector for setting up a joint venture with the associate company.
"Talks with the international companies are in an advanced stage and something will fructify definitely," Bose said.
Bose said that the company was keen to increase joint venture partnerships with the selected company which would start manufacturing activity there.
Although he did not give a time frame, Bose said something would crystallise within this financial year.
The company felt that there was an urgent need to cut losses, for which it considered expedient to divest the Chennai car plant.
HM had been suffering losses due to poor demand of its cars like Cedia, Outlander and the age-old Ammbassador car manufactured at its Uttarpara plant in West Bengal.