Hindustan Motors, the manufacturer of the iconic Ambassador and Landmaster cars, is now entering the electric vehicle (EV) segment.

A senior official from Hindustan Motors told news agency PTI on Thursday that the C K Birla-owned automaker and a European company completed due diligence for the proposed electric two-wheeler project.

“The due diligence between HM and the European company is now complete. The name of the foreign partner will be announced shortly,” the official said.

The electric two-wheelers are likely to be launched in the next financial year at the Hindustan Motors’ manufacturing plant in West Bengal’s Uttarpara.

The official further told PTI on Thursday that manufacturing will begin after the modernisation of the Uttarpara plant as it has been lying defunct for several years.

The combined investment for the electric two-wheeler project will be around ₹600 crore, following which Hindustan Motors and its yet-to-be-revealed European partner will explore possibilities of entering the electric four-wheeler segment.

The above Hindustan Motors official said on Thursday after the joint venture is formed, around six months will be required to start a pilot run.

Hindustan Motors was one of the largest automakers in India and stopped its production in 2014. Last month, the automaker said it had paid off most of the liabilities other than a few employee liability and has been able to reduce accumulated losses.

Uttam Bose, the director of Hindustan Motors, had previously said the automaker was investing resources in the electric vehicle segment.