Hindustan Motors has sold the Ambassador car name to French car maker – Peugeot. Though the two automakers haven’t made an official announcement yet, the deal is said to be worth Rs 80 crores. Hindustan Motors had stopped manufacturing Ambassador’s in its West Bengal plant since 2014.
We had earlier reported about Peugeot’s partnership with Hindustan Motors, which will allow the new entrant in the market to use Hindustan Motor’s existing manufacturing facility in Tamil Nadu. However, when this Joint Venture announcement was made, there were no talks about the Ambassador brand being on sale. Insider sources closer to the proceedings suggest that the CK Birla Groupe, owners of Hindustan Motors, were initially hesitant of selling the iconic name to a new carmaker. However, since the company had already stopped manufacturing the car, and the name was no real importance for any future plans either, the company, later on, decided to go ahead with the deal, thus selling the retro car brand to the French automaker.
Peugeot hasn’t yet revealed its plans for the Ambassador brand. However, hard-core Vintage car fans and Ambassador loyalists are currently having mixed feelings about the said step. While it will be good to see the Ambassador brand back on our roads, its success entirely depends on what the new owners do with the name plate. Additionally, it won’t be easy for Peugeot to decided exactly what step needs to be taken. The company has no significant presence in the Indian market, while the few customers who know about the Peugeot name remember it for all the wrong reasons. Similarly, while the Ambassodor name plate was surely one of the most popular car brands at one point of time, it later acquired an image of unreliability and coarseness.
Whether or not will this purchase help Peugeot cars in India is something we will need to wait and watch.