HINDUSTAN MOTORS

1. Presented by,
Pradeep Kumar

2. ABOUT HINDUSTAN MOTORS
 Hindustan Motors is an automobile manufacturer from India. It is part of the Birla
group of industries
 The company was the largest car manufacturer in India before the rise of Maruti
Udyog (MUL).
 It is the producer of the famous Ambassador car, widely used as a taxicab and as a
government limousine.
 One of the original three car manufacturers in India, founded in 1942, it was a leader
in car sales until the 1980s, when the industry was opened up from protection.
 Hindustan has a joint venture with Mitsubishi, producing versions of the Lancer and
Pajero, but is best known for its own models.

3. LIST OF PLANTS
 It is a one billion turnover company manufacturing Passenger Cars, Utility Vehicles,
Power Products and Earthmoving Equipment. The manufacturing facilities of the
company are spread across India: Uttarpara in West Bengal, Pithampur in Madhya
Pradesh, Thiruvallur and Hosur in Tamil Nadu, and Pondicherry. The latest model,
Mitsubishi Lancer, is manufactured in their state - of - the - art manufacturing facility
at Thiruvallur, Tamil Nadu.

4. ABOUT MITSUBISHI MOTORS
 Established in April 22nd 1970.
 Development, design, manufacture, assembly, sales and purchase, importing and
other transactions relating to automobiles and to component parts and replacement
parts of automobiles.
 It has a global presence in more than 170 countries.
 At the end of the Second World War Japan's large industrial groups were dismantled
by order of the Allied powers and Mitsubishi Heavy Industries was split into three
regional companies, each with an involvement in motor vehicle development.
 Known for developing powerful and fuel efficient engines.

5. MOTIVES FOR PARTNERSHIP
FORMATION-LICENSING
 Both organizations have a similar age.
 Purpose of business and nature of work is similar to a huge extent.
 No need for Mitsubishi Motors to incur expenditure on marketing the product.
 Licenses are usually non exclusive.
 Automatic transition from product development to income stream
 A license to use the IP rights of an international brand like Mitsubishi Motors gives
Hindustan Motors a certain degree of leverage.
 They reduce their risk by licensing a marketable product where a portion of their costs
depends solely upon sales, plug it into their existing marketing network and begin a stream
of profits without having to spend time on research and development.

6. MANAGING THE PARTNERSHIP

7. REASONS FOR POSSIBLE DISCONTINUITY
 Restructuring of HML.
 Licensing agreement.
 Lack of a proper presence in the Indian market.
 Discontinuing the Sedans.
 De merger of the Chennai plant.
 Possible tie up with Renault- Nissan.