French car manufacturer Peugeot has bought the iconic Ambassador from its maker Hindustan Motors in a deal that highlights the changing era in Indian motoring history. The CK Birla Group that owns HM, said it had signed an agreement with Peugeot SA to sell the Ambassador for 800 million rupees.
Fondly called "Amby", the sedan was the only luxury car available in India till the mid-1980s. HM had stopped manufacturing it in 2014, after over 2,200 cars were sold in 2013. Modelled after the British Morris Oxford III, the Ambassador remained largely unchanged for over five decades - a status symbol in 70s, ferrying Indian elite, including prime ministers, visiting heads of states and celebrities. Its lumbering shape was suited for Indian pot-holed roads, and rugged terrain, however, poor gas mileage and a lack of luxury features diminished its demand, as the Indian middle class preferred to own cheaper and newer models.
It remains unclear what exactly the French maker plans to do with the brand. Just last month it signed an agreement with Birla to return to the fast-growing market, saying it will invest $107 million in Hindustan Motors manufacturing facility in Tamil Nadu.
