Will PSA Resurrect Opel and Ambassador in India?


PSA is in talks with General Motors to buy Opel following its purchase of Ambassador brand recently; it ignites speculation of reviving both the iconic brands in India

PSA has convened with General Motors in an attempt to buy the American automobile group’s European subsidiary Opel. The French consortium is the owner of Peugeot, Citroen and DS brands and is expected to purchase Vauxhall alongside Opel from GM. If the buyout comes into fruition, PSA will become the second largest European automobile group in the region behind Volkswagen AG.

So would we have to be excited? Probably yes! Interestingly, just a few days ago PSA bought the iconic Indian brand Ambassador from CK Birla group owned Hindustan Motors. Apart from that, a deal was penned with them to re-enter Indian market which effectively signals the rebirth of Peugeot brand name. The recent moves by the French automobile group in India have fuelled rumours that it might re-launch the Ambassador brand in a new avatar.

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Also read: Peugeot to Make India Comeback by 2020 as PSA and JK Birla Sign Joint Venture

Opel was present in India for nearly a decade. As a subsidiary of the General Motors, Opel India launched three different models in the domestic market – Opel Astra, Opel Vectra and Opel Corsa. It was positioned with considerable upmarket demeanour to its name with quality interiors and alluring styling. Later GM introduced Chevrolet here, leading to Opel’s discontinuation as a whole.

Now with PSA ready to acquire Opel, it may as well be an attractive prospect for its global expansion. With the Opel badge not new to India and PSA identifying our market as a big deal for its future growth, its acquisition could hold a huge significance for us. The decision of selling Vauxhall and Opel comes as an aftermath that General Motors is experiencing losses with them. It is still not clear, what price the American company might want for the famed European outfits but the talks are well underway.

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Also read: Hindustan Motors’ Iconic Ambassador Brand Sold to Peugeot

As Indian market is one of the fastest growing markets in the world at present, demands for the upmarket cars have been rising rapidly. Several global automakers are showing interest to heavily invest including Kia, Lexus and of course Peugeot. It would be interesting to see a brand like Opel with a history to talk about in the horizon re-enter with range of new offering.