One of India's most iconic car brands has been sold by Hindustan Motors to the French manufacturer Peugeot for a nominal $12 million, according to reports.
The Ambassador car used to be one of India's most prestigious vehicles, used across the government. But it has been out of production since 2014 and It is not clear whether Peugeot will revive the brand.
Based on the British Morris Oxford, the Ambassador was for three decades India's bestselling car. In the 1980s the company was selling 20,000 models a year.
However, it’s sales were on a downward trend in recent years.
The C.K. Birla group, the owners of Hindustan Motors, decided to finally sell the car brand to the French auto makers.
Last month, the group had signed a separate agreement with Peugeot to set up two joint ventures with production capacity initially estimated at 100,000 vehicles per year by 2020.
The PSA Group, which makes Peugeot and Citroen cars, is yet to reveal which model it will build in India.
‘India Investment Journal’ has been tracking this issue