Hindustan Motors sells Ambassador to Peugeot, could result in a new Ambassador

Andrew Cummings
February 11, 2017

Production of the Ambassador had ceased about three years back after the car's journey of more than seven decades.

While there are no details shared by Peugeot at this point about its vision ahead for the Ambassador, it is however expected that the French vehicle maker will attempt to revive the legendary brand even as it itself makes yet another attempt to crack the Indian market.

This delightful development in the automotive industry comes on the heels of a partnership between Peugeot and C.K Birla Group (owner of Hindustan Motors) inked last month. Ambassador was a regular site for people who grew up in the 1960s and 1970s.

Ambassador, the auto brand that ferried around state officials for decades is now being sold to French company Peugeot (PSA).

The first serious competition for the Ambassador came in the 1980s from the Maruti Suzuki Ltd.'s 800, which at that point was much cheaper.

The company has bought the Ambassador brand from the ailing Hindustan Motors.

"Hindustan Motors has executed an agreement with Peugeot SA for the sale of the Ambassador brand, including the trademarks, for a consideration of Rs 80 crore", Hindustan Motors said in a regulatory filing.

The company said, "The sale of the Ambassador Brand shall be effective upon fulfillment of the terms and conditions as prescribed in the said abovementioned agreement".

In the mid-1990s, the Peugeot 309 was assembled and sold by PAL. In 2011, it made a decision to re-enter the Indian market with a midsized Sedan.

Hindustan Motors suspended production at the factory subsequently announcing a voluntary retirement scheme for its workers, the following year.

Peugeot will be coming to India in alliance with the CK Birla group and is expected to make its debut in the country by the year 2018, with operation kick-starting from the year 2021.

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