There was a time when Ambassador car used to be a status symbol for rich families in India; yes, this car by Hindustan Motors was rightly termed as the “Politicians’ car” and if you grew up in the 70’s you would definitely know how this car was a part and parcel of Indian culture; although it was not that great in looks, it always remained very close to the hearts of Indians. After Maruti 800 entered the market as “People’s car”, Ambassador got dethroned from the royal position and started losing its charm.
However, now, the car brand has a new owner! Yeah, you got that right; Ambassador is no more a part of Hindustan Motors, as now, it has been sold to Peugeot, the French car maker.
Hindustan motors has signed an agreement with Peugeot SA and has sold Ambassador brand for Rs 80 crores.
In a regulatory filing, it was confirmed that
“We have executed an agreement with the PSA Group for the sale of the brand Ambassador, including trademarks. Ambassador has been an iconic brand and a surplus asset with us. We were looking for a suitable opportunity and found the right buyer in the PSA Group. We intend to use the proceeds from the sale in clearing dues of employees, lenders and other outstandings.”
Since 3 years, the production of Ambassador cars was discontinued in India because sales witnessed a constant drop. Peugeot is all set to enter the Indian market and it will use the manufacturing facility at Tamil Nadu. Initially, the manufacturing capacity will be restricted to 1 lakh vehicles every year but will increase gradually.
Few questions related to this agreement were mailed to Peugeot, but the company has not yet replied. It is not yet sure whether the French company will use the Ambassador car brand for marketing its cars in India.
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