Next-gen Hindustan Ambassador rumours
When it comes to India’s auto industry, the Hindustan Ambassador is a legend that doesn’t require an introduction. It was sold for a very long period. The Ambassador was eventually forced to be discontinued by the manufacturer due to weak sales and the implementation of new, harsher emission regulations. But within the next two years, Ambassador might make a comeback to the Indian market, per a story published in The Times of India.
Groupe PSA now owns Ambassador. In 2017, they paid Rs. 80 crores for it. Rumors have been circulating ever since regarding Peugeot bringing the Ambassador nameplate back to life. But it appears that the rumors may finally be accurate.According to the article, the Ambassador’s engine and design are now being worked on by Peugeot and Hind Motor Financial Corporation of India, or HMFCI.
The new model will be manufactured at Hindustan Motors’ Chennai facility, which is now owned by HMFCI. HMFCI is a part of the CK Birla Group. According to Uttam Bose, director of Hindustan Motors, “Mechanical and design work for the new engine has reached an advanced stage,” as reported by the Times of India.
An earlier version of the Hindustan Motors Chennai Plant produced Mitsubishi automobiles, while the Uttarpara plant produced Ambassador vehicles. September 2014 was the last time an Ambassador left the Hindustan Motors facility in Uttarpara. The brand was sold to Groupe PSA since the firm had enormous debt, there was no demand, and sales were poor.
Hindustan Motors
Hindustan Motors was founded in the Gujarat port of Okha long before the country gained its independence. 1948 saw a relocation of operations to Uttarapura in West Bengal, when the renowned Ambassador was first produced. The British Morris Oxford Series 3 served as the model for the Ambassador. For thirty years, the Ambassador was the best-selling vehicle in India. The Ambassador was a prestige symbol until the middle of the 1990s, when rival cars entered the market and sales began to decline. Sales peaked in the 1980s at about 20,000 units, and by 2014, they had further declined to 2,000 units.
After Toyota in Japan, the Uttarapara plant is the second-oldest manufacturing facility in Asia and the oldest in India. Its location is about 20 kilometers from the city. Hindustan Motors and an unidentified European company have signed a memorandum of understanding. Two-wheelers will soon be produced at the plant, followed by four-wheelers in the future.
Bose stated, “There were 2,300 employees at the time, but that number has now dropped to 300. Additionally, by selling land parcels to the Hiranandani Group, we have decreased our total losses. After speaking with a few Chinese EV companies at first, we chose to work with a European business. The business we’ve selected has good technology. HM would be offering land and some funds and the European manufacturer would provide technology and some funds. An estimated 600 crores would be invested in the project by HM.