The iconic Hindustan Motor Ambassador has been sold to the French manufacturer Peugeot for an agreed sum of Rs 80 crore. The C.K. Birla Group, who owns the Hindustan Motors, formalised the deal with the PSA Group for the sale of the Ambassador brand, including the trademarks. The proceeds from the sale will be utilised by Hindustan Motors to clear dues of employees and lenders.
Introduced in 1958, based on the British Morris Oxford III, the Ambassador ceased production just three years back. The Ambassador brand ruled the Indian streets in 70’s and 80’s, with six revisions in its 56 years of production. The last Ambassador rolled out of Hindustan Motor’s Uttarpara facility in 2014 when the company could no longer keep up with the new generation of cars in the Indian market.
As reported earlier, PSA Group is all set to foray into the Indian market with Rs 700 Crore joint ventures with C.K. Group. Of the two joint ventures, the PSA Group will hold a majority stake in the joint venture with Hindustan Motors Finance Corporation Limited (HMFCL) for the assembly and distribution of PSA passenger cars in India at HMFCL’s Tamil Nadu facility. PSA aims at manufacturing and exporting one lakh vehicles a year in the initial phase and further investments will be made depending on market performance. We believe that they will approach the Indian market with three models in their lineup, with operations to start by 2020.
As of now, PSA hasn’t made any official statement about its plans with the Ambassador. It would be bold decision if the French carmaker chooses to revive the Ambassador in its Indian venture.
source”cnbc”