Peugeot SA, which recently bought the Ambassador brand from Hindustan Motors, is likely to launch the iconic car in a new avatar, reported Business Standard. The news was confirmed by RBSA Advisors, who helped Kolkata-based Hindustan Motors sell the brand for Rs 80 crore.
Rajeev Shah, managing director and chief executive officer, RBSA Advisors, said Peugeot SA bought the brand with the plan to re-launch it in the mid-market segment. “This is purely a brand sale. It includes the Ambassador with its variants. Peugeot is likely to relaunch the brand with multiple variants,” he told the newspaper.
The new cars will be priced between Rs 5.5 lakh and Rs 9 lakh. In that range, the new Ambassadors will be competing with Hyundai Xcent, Honda Amaze, Honda City, Volkswagen Vento and Maruti Suzuki Swift Dzire.
“Every year, 40-50 models of passenger vehicles are launched in India. The Ambassador brand, on the other hand, is deeply ingrained in the psyche of consumers. Peugeot would like to make it the Rolex of cars,” Shah said. According to the deal signed between the French company and Hindustan Motors, they will also have two joint ventures, including the Hindustan Motors Finance Corporation plant in Chennai, where PSA will hold majority stake.
Shah said the company may consider manufacturing the cars in its Chennai plant. Hindustan Motors shares went up over 10% on Monday morning after the CK Birla group informed bourses about the deal, reported Economic Times.
Ambassador was designed by British company Orris Oxford, which is now defunct. The car had hit Indian roads in 1957. It used to be largely manufactured in the Uttarpara plant in West Bengal.
Peugeot SA’s presence in India began with the deal it shared with the Premier brand, under the joint venture Peugeot PAL India. However, the deal fell through in 2001. The CK group’s attempts to restore their position in the Indian market was obstructed by the global economic slowdown, PTI reported. Its plans to launch a mid-sized sedan in 2011 had also failed.
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