Next-gen Hindustan Ambassador rumours: We explain what’s going on

Hindustan Ambassador is an iconic and a very important car in the history of Indian automotive history. It was on sale for decades and the manufacturer finally pulled the plug on this sedan in 2014. One of the reason for discontinuing the car was the lower demand, stricter emission norms, and rising competition. Lately we have been getting reports about the return of the Ambassador to the Indian market. There are reports that suggest that the Ambassador might return to the market in the next two years.

Yes, it is happening!

As of now, we know that Groupe PSA owns the Ambassador nameplate. They bought it for Rs. 80 Crores back in 2017. Ever Since they bought it, there have been rumours of Peugeot bringing back or resurrecting the Ambassador nameplate. It looks like the rumours might finally be true. According to a report that was published by The Times of India last year, the joint venture of Hind Motor Financial Corporation of India or HMFCI and Peugeot have started working on the design and the engine of the Ambassador.

The car in the images here are artist’s renders, and that will not be what the actual next-generation Ambassador would look like.

The new generation Ambassador will be manufactured from the production facility of Hindustan Motors in Chennai that now falls under HMFCI. Hind Motor Financial Corporation of India or HMFCI falls under CK Birla Group. Director of Hindustan Motors, Uttam Bose told Times of India that the “Mechanical and design work for the new engine has reached an advanced stage.” The Chennai plant that Hindustan Motors will be using to manufacture the next-gen Ambassador was once used to Mitsubishi cars.

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The manufacturing plant in Uttarpara, West Bengal was used to manufacture Ambassador cars. The last Ambassador to roll out from Hindustan Motors’ Uttarpara plant was in September 2014. The manufacturer was in huge debt, demand was very less and the sales were not good so the brand was sold to Groupe PSA. Hindustan Motors was established before independence in Gujrat’s Port called Okha. The operations were moved to West Bengal’s Uttarapara in 1948. The Ambassador was based on the Morris Oxford Series 3 which is a British car. Ambassador was the best-selling car in the Indian market for almost three decades.

Car was a luxury item back then and the Hindustan Ambassador was considered a status symbol. Till mid 90’s Ambassador image remained like that but, then the competition slowly started increasing in the market. In the 1980s the sales were around 20,000 units per month and it fell further to 2,000 units in 2014. Hindustan Motors manufacturing plant in West Bengal’s Uttarpara was the oldest manufacturing plant in India and is the second oldest in Asia after Japan’s Toyota. An MoU has been signed between Hindustan Motors and a European company which is currently unknown. The plant will now be used for manufacturing two-wheelers and then eventually four-wheelers.

Bose said, “At that time, the number of employees was 2,300, which has now come down to 300. We have reduced our accumulated losses by selling land parcels to the Hiranandani Group as well. Initially, we were talking to some Chinese EV firms, but then we decided to go for a European company. The company we have chosen has sound technology.” HM would be offering land and some funds and the European manufacturer would provide technology and some funds. It is estimated that HM would be investing 600 Crores into the project.

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