Shares of Hindustan Motors are back in focus. They ended the last trading session above the ₹24 mark, generating significant interest among investors. The stock rose by over 3% during Thursday’s intra-day session to touch ₹24.20 on the BSE. Markets remained closed for Good Friday, but all eyes are now on the next trading session.
According to the company’s March 2025 shareholding data, Life Insurance Corporation of India (LIC) owns approximately 1.3% stake in Hindustan Motors, equivalent to 27.49 lakh shares. The stakeholding by a significant institutional investor like LIC has heightened anticipation among retail investors and market watchers.
Anticipation Rises with Ambassador’s Electric Comeback
Joining the buzz, Hindustan Motors just announced the revival of its legendary Ambassador car, albeit this time in electric form. The auto major officially announced this news on March 4, 2025. While detailed specifications are yet to be disclosed, initial reports suggest the new EV model could feature a retro-modern design and might shift towards a crossover body style, keeping in mind the waning popularity of sedans in India.
The new electric Ambassador is expected to be priced between ₹10 lakh and ₹15 lakh and could be launched by March 2026. The project is reportedly being undertaken with support from Groupe PSA (now part of Stellantis), which holds the rights to the Ambassador brand. A successful rollout could potentially boost Hindustan Motors’ stock further, analysts believe.
FII Interest on the Rise
Foreign institutional investors (FIIs) have also slightly increased their holdings in Hindustan Motors in addition to LIC. As interest in the company’s turnaround story grew globally, FII ownership increased from 0.05% in December 2024 to 0.14% by the end of March 2025.
Company Profile
Hindustan Motors, historically known for producing iconic passenger vehicles like the Ambassador and commercial trucks like Bedford models, currently operates in the automotive components and spare parts business. It has a legacy of assembling premium mid-size sedans such as the Mitsubishi Lancer series in India.
As the company charts a new course into electric mobility, market participants are keenly observing how its transformation story unfolds in the highly competitive EV landscape.
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