Peugeot buys 'Ambassador' for Rs 80cr, few facts you should know

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26 Aug, 2025 12:21

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Binu PanickerMoneycontrol Ambassador, the car which once signified opulence, a sign of prosperity, and power, is changing hands. European auto major Peugeot Friday signed a deal with Hindustan Motors to buy the brand for Rs 80 crore."Hindustan Motors has executed an agreement with Peugeot SA for the sale of the Ambassador brand, including the trademarks, for a consideration of Rs 80 crore," Hindustan Motors said in a regulatory filing.This is PSA Group’s second deal with the CK Birla group. In an attempt to re-enter the Indian market both the groups last month entered into what they termed as a “long term” partnership with PSA earmarking an initial investment of 100 million euros (approximately Rs 700 crore) to set up vehicle and powertrain manufacturing in Tamil Nadu.Indian markets are not uncharted waters for PSA Group. In fact, this is PSA’s third attempt to materialise the growing Indian automotive market, which is slated to reach 8-10 million cars by 2025.The PSA group had entered into a joint venture with Premier family, Peugeot PAL India, but it pulled out of the partnership in 2001 after an unsuccessful stint. The group made another attempt to enter the Indian market; however, it had to take it slow following the global economic crisis in 2009.The partnership with CK Birla group will allow PSA to bring an initial manufacturing capacity of about 1,00,000 vehicles per year. The company is planning to ramp up investments progressively to assist growth of the “long-term” project.The partnership aims to cater the domestic market requirements and global OEMs.Some facts to ponder upon:Established in 1942 by CK Birla’s grandfather, BM Birla, Hindustan Motors Limited's Ambassador had a glorious run for more than four decades.The Ambassador was first launched in 1958. The car drew heavily from the British car model, Morris Oxford III.At its peak in the 1970s the Ambassador had 75 percent market share.The car used to touch sales figures of 6,000 units a month, in the early 80s. The feat is more significant given many brands struggle to even clock 5,000 units a month in this day and age.The Ambassador’s red beacon even today signifies 'babudom' and symbolises Indian political system.It was Maruti Suzuki’s '800' which took the shine out of the Ambassador. The final nail in the coffin came when the 'Amby', as it was fondly called, started being replaced by the latest and the more compact models.The car has been revised six times in its glorious journey beginning from 1958 till it breathed its last in 2014. The generations were named Mark-1, Mark-II, Mark III, Mark IV, Nova and Avigo.