French automobile manufacturer Peugeot was recently in the news after the company announced its entry into the Indian market via a Joint Venture (JV) with the CK Birla group. Now, Peugeot has made it to the headlines yet again after they bought the iconic Ambassador brand from Hindustan Motors.
In a regulatory filing, Hindustan Motors said, “Hindustan Motors has executed an agreement with Peugeot SA for the sale of the Ambassador brand, including the trademarks, for a consideration of INR 80 crore.”
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A spokesperson from the CK Birla group was quoted saying that they have executed an agreement with the Peugeot SA group for the sale of the brand Ambassador, including its trademarks. The spokesperson further went on to add that they intend to use the proceeds from the sale to clear the dues of the lenders and employees.
Introduced about seven decades ago, the Ambassador brand made its debut when Hindustan Motors launched the Morris Oxford series II (landmaster) in a new avatar with minor changes. Sales were on a high in the 1980’s with 24,000 units being sold in a single year.
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In 2013-14, the sales dipped to a mere 2,000 units a year as the model could not keep up with the new generation of cars. In 2014, parent company Hindustan Motors discontinued the Ambassador model. Now, with the sale of the brand to Peugeot, we can expect a come-back of the brand soon. What are your views? Tell us through the comments section below.