India-based automobile manufacturer Hindustan Motors has suspended production of Ambassador cars at its Uttarpara plant located outside of Kolkata.
The move by the company came due to weak demands combined with lack of funds and doubts on the future of the vehicle.
Ambassador was the first car made in India and had reportedly lost its market after the introduction of Maruti Suzuki's 800 hatchback.
Hindustan Motors said in a statement with Bombay Stock Exchange that the Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities.
"Given the present circumstances it has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice," the company added.
"The suspension of work will enable the Company in restricting mounting liabilities and restructure its organisation and finances and bring in a situation conducive to reopening of the plant."
In addition to Ambassador cars, the Uttarpara plant, which employs 2,500 workers, also produces the Winner light commercial vehicles and components.
