The Ambassador brand was introduced 70 years ago when Hindustan Motors launched the Morris Oxford series II (Landmaster) with minor changes. To those who grew up in the 1960s and 70s, Hindustan Motors Ambassador was not just a car; it was an inseparable part of Indian lifestyle. But in an era of limited choices, this spacious 4-wheeler was the preferred choice for most Indians who could afford it. Even today for many, the car remains with memories of their fonder and younger days. It was a luxury for some and it has been the bread and butter for many, especially in Kolkata.

Hindustan Motors Ambassador, the iconic Indian car brand that carried both the Prime Minister and the common man, was sold to French carmaker “Peugeot”.

As we know the Ambassador could not compete with the new generation cars, being flushed into Indian Market, production was stopped in 2014. Now after 3 years, The C K Birla Group which owned Hindustan Motors formalised a deal for Rs 80 crore on Feb 10, 2017 with French carmaker “Peugeot”.

A CK Birla Group spokesperson said, "We have executed an agreement with the Peugeot SA Group for the sale of the brand Ambassador, including the trademarks... We intend to use the proceeds from the sale to clear dues of employees and lenders".

Hindustan Motors Ambassador quickly became a national icon and continued to dominate Indian roads till the 1980s, when the Maruti 800 exposed its inadequacies.

From 24,000 units a year in the mid-1980s, sales crashed to less than 2,500 units in 2013-14. In final days of production, only 5 Ambassadors were built.

On May 24, 2014, the inevitable happened when production was stopped at the Uttarpara factory of Hindustan Motors. The Uttarpara plant with older looks of 1942, is the second oldest in Asia after Japanese giant "Toyota".

The PSA Group, which owns the Peugeot, Citroën, and DS Automobile marques, established a partnership with the CK Birla Group in January, 2017 to enter the Indian automobile market. This joint venture, will see the French company set up a factory in Tamil Nadu, with a reported initial investment of Rs 700 crore, to manufacture around 1,00,000 vehicles each year. This venture is not the PSA Group’s first foray into the Indian market. This brand first entered India in 1993 with the Peugeot 309. It was assembled and sold under a joint venture with Premier Automobiles India.

Despite having high market demand initially, labour problems and poor dealer service (PAL’s partnership with Fiat) forced Peugeot to quit India in 1997. The PSA Group again attempted to enter in 2011. A innovative event was held at the proposed manufacturing plant site in Sanand, Gujarat but improvements in the French carmaker’s global plans resulted in the shelving of the project. Last year Peugeot Citroen announced plans to re-enter India+ by 2018. Earlier this year (2017), the company had formed a Joint Venture with CK Birla Group for the Chennai plant. This tieup was to make use of the Hindustan Motors plant in Chennai as its production unit. The Chennai plant currently produces vehicles for Mitsubishi and has a capacity of manufacturing 12,000 units a year.

It is not clear if Peugeot will use the Ambassador brand for its cars in India. A questionnaire mailed to the French company is unanswered.

Hindustan Motors Ambassador is now Sold to French