The Ambassador brand sold to Peugeot SA from C K Birla group was worth Rs. 80 crore; the deal was inked right ahead of Peugeot re-entering India
The legendary Indian car brand Ambassador has been sold to the European auto major Peugeot SA. A deal between the French company and C K Birla group, which owned the Ambassador, the trademark and everything that goes with it was penned for Rs. 80 crore. The handover comes right ahead of Peugeot’s re-entering in Indian market.
PSA Group partnered with the C K Birla group last month to re-enter the Indian market and earmarked an initial investment of 100 million Euros (around Rs. 700 crore). Together the two companies will manufacture cars in Tamil Nadu and sell them. Through the joint venture, Peugeot is expected to launch a range of cars in the country by 2020.
Hindustan Motors launched the Ambassador brand nearly seven decades ago. The first generation of the iconic car came inspired by the Morris Oxford Series III. The Ambassador used to be the sign of the elite class and it was widely used by the politicians, ministers and big shots. It enjoyed the status of the state car for quite long time.
The Ambassador was popular for its spacious interior and comfort on offer. After ruling the roads of the country for decades, the car started facing sales decline, as competition grew. During 2013-2014, its sales slumped to below 2,500 units leading the manufacture to discontinue the icon. The Ambassador was discontinued in 2014, but its appeal and brand name remain intact.
While the competition was growing at fast pace, the Ambassador was stuck in its own time zone. Now, with Peugeot in control of the brand we can expect the iconic car to get a revival touch. In that case, it could come based on modern platform and incorporate latest technology as well. No matter what, if Peugeot considers re-launching the Ambassador brand in the domestic market, it could become a game changing step for its sales aspirations. Would you look forward to the Ambassador’s revival as a modern day sedan?