Iconic Ambassador to make a comeback in new incarnation

May 24: The iconic Ambassador car, which was the pride of country for many years, will arrive in new look suiting the present environment. Hindustan Motors is planning to bring out an electric version of the car that was a household name in India. Hindustan Motors is all set to make its comeback in India in partnership with a European auto company. The name of the European company is still under the wraps.

The new avatar of the Ambassador will be manufactured at the Hindustan Motors’ production facility in Chennai and is operational under HMFCI. Groupe PSA signed two joint ventures with CK Birla group back in January 2017 worth more than 100 million Euros initially. A month later, the Ambassador nameplate was bought for Rs. 80 crore from Hindustan Motors which is owned by CK Birla group. As per the signed MoU, Hindustan Motors will hold a 51% stake in the joint venture while the European company will hold a 49% stake. The joint venture is expected to bring an investment of Rs 600 crore.

According to reports, the company will first produce electric two-wheelers and then start manufacturing the four-wheeler. The process of partnership will take three months to complete. Controlling stakes will be with Hindustan Motors under an agreed ratio of 51:49.

The Indian car market was dominated by Hindustan Motors in 1970s with a market share of 75%. It was mainly because of Ambassador which was sold at premium during those times. The demand fell after the arrival of cheaper cars like Maruti 800 which forced the company to ultimately stop producing Ambassador. The last Ambassador car was manufactured in the Uttarpara plant of Hindustan Motors way back in 2014. Chennai plant was used to produce Mitsubishi cars. Later the brand was sold to Groupe PSA due to debt and low demand.

Hindustan Motors’ Director Uttam Bose told TOI that the development has begun on the ‘new look’ Amby with the design and mechanical work for the new powertrain reaching an advanced stage.