Daijiworld Media Network – New Delhi (MS)
New Delhi, May 27: Ambassador car, which was the pride of country for many years, will arrive in new look suiting the present environment. Hindustan Motors is planning to bring out an electric version of the car that was a household name in India.
It is learnt that Hindustan Motors will come out with the electric version of Ambassador in partnership with a European company. Both companies are said to have signed a MoU in this regard.
The new electric version of the vehicle will be manufactured at the Chennai manufacturing plant of Hindustan Motors. HMFCI, which is a concern of CK Birla group, is the owner of the plant at present.
According to reports, the company will first produce electric two-wheelers and then start manufacturing the four-wheeler. The process of partnership will take three months to complete. Controlling stakes will be with Hindustan Motors under an agreed ratio of 51:49.
The last Ambassador car was manufactured in the Uttarpara plant of Hindustan Motors way back in 2014. Chennai plant was used to produce Mitsubishi cars. Later the brand was sold to Groupe PSA due to debt and low demand.
The Indian car market was dominated by Hindustan Motors in 1970s with a market share of 75%. It was mainly because of Ambassador which was sold at premium during those times. The demand fell after the arrival of cheaper cars like Maruti 800 which forced the company to ultimately stop producing Ambassador.
In addition, still competition from the market, the technology of Hindustan Motors lagged and the result was steep drop in sales and eventual closure of the brand, which was sold to Groupe PSA.