Hindustan Motors had announced in May 2010 that it will approach Board for Industrial and Financial Reconstruction (BIFR) due to eroding net worth. It had reported eroding of 50 percent of its net worth in past four years and now the top executives from the company also seems to be quitting.
Chief General Manager of Sales and Marketing Ratan Singh is among the top senior officials who have recently put down their papers. According to the sources, he quits after Romesh Lalwani AGM (North zone) and Moloy Chowdhary (Executive vice President) who quit in July this year.
Hindustan Motors official spokesperson denied all reports stating that these normal industry movements and changes in top management keep happening in the auto industry. Upon being asked about delay in deliveries of vehicles to the dealers, the spokesperson said that the overall sales of the company has increased and the delays are mainly in case of models which are being manufactured only upon receiving confirmed orders. "The demand for our vehicles is increasing. Under such fluctuating market conditions, the volume ramp up takes some time and delivery could get slightly delayed,” spokesperson said refuting all claims.
In the current fiscal year, HM has sold 2966 units as against 2372 units sold last year. It sold 845 units of Ambassador in July 2010 against 663 units sold in the same period last year.
