CK Birla Group has sold the iconic Ambassador brand to Peugeot SA for Rs 80 Crore. This comes just couple of weeks after both the companies signed two JVs for Peugeot’s entrance to the Indian market.
A letter sent to the Stock Exchange by Hindustan Motors confirms the same. “Hindustan Motors Limited has executed an agreement with Peugeot SA on 10th February, 2017 for the sale of the Ambassador brand, including the trademarks, and certain related rights for a consideration of INR 80,00,00,000”, said the company addressing the listing department of NSE and BSE.
However, its yet to be known what Peugeot intends to do with the brand. The Ambassador which ran for over 5 decades in India, was based on the Oxford series III from Morris Motors, UK. The Indian version had engines from Isuzu, with a 5 Speed manual transmission. The car is known for its role in the Indian political scenario, as it once carried the heads of the state as well as the wannabes proudly, before it succumbed to the competition and financial woes. Hindustan Motors did introduce a bit modernized Ambassador Grand and Avigo as well, but couldn’t manage to keep up with the competition, and the production was stopped in 2014.
Interestingly, Peugeot’s interest in the Ambassador brand isn’t new. Watch this old ad below