Ambassador brand name sold to Peugeot for Rs 80 crore

Hindustan Motors has sold the Ambassador car brand to Peugeot as part of a deal worth Rs. 80 crore. This announcement comes a couple of weeks after the CK Birla Group, owners of Hindustan Motors, signed a joint venture agreement with the PSA Group, owners of Peugeot.

Based on the Morris Minor III, the Hindustan Ambassador was first launched in India in 1957. It then went on to become a favourite of the masses and was used by a variety of social sections - from taxi operators to politicians. But with new automakers entering the Indian market and with the lack of any comprehensive updates to the Ambassador, sales started to fall rapidly. Eventually, Hindustan Motors pulled the plug on the Ambassador's production in 2014.

Peugeot hasn't yet indicated any details about its plans regarding the newly acquired brand name. With the French automaker expected to enter India by 2019, it is being speculated that the company might revive the Ambassador moniker with a new offering.