Hindustan Motors to bring back its iconic electric Ambassador in India - Azaad Goal

Hindustan Motors to bring back its iconic electric Ambassador in India


Hindustan Motors in India is famous for its iconic Ambassador four Wheelers. The company has announced its comeback in the Indian market. However, this time it plans to manufacture electric vehicles. The manufacturer has planned to establish a partnership with a European EV firm.

The agreement would be to make electric scooters in the company’s plant. Moreover, the company has decided to expand its business and make electric cars. According to the reports, both companies have signed a memorandum of understanding to establish the partnership.

It would take three months to the completion of the entire procedure of the partnership. The reports suggest that initially, the company will manufacture electric 2 Wheelers. The agreement related to upcoming projects will be in the ratio of 51:49.

The controlling stakes would be with Hindustan motors. The company will manufacture the new model at its Chennai manufacturing plant. Currently, HMFCI is the owner of this plant, which is also a part of the CK Birla Group.

Hindustan motors used to produce Mitsubishi cars at its Chennai plant and ambassador cars at the Uttarpara plant. The Uttarpara plant of Hindustan motors delivered its last ambassador in September 2014. The company was going through heavy debt, poor sales, and low demand. So the brand was on sale, and Groupe PSA purchased it.

In the 1970s, Hindustan Motors held a 75% share in the market of Indian automobiles. Its iconic ambassador cars ruled over Indian roads for several years before getting phased out. It began facing a tough challenge from the more affordable and cheaper cars such as Maruti 800.

Also, the Hindustan Motors Ambassador could not cope with the speedily changing automotive technology in the industry. It resulted in a reduction in sales. Finally, the company discontinues its production in 2017. The Groupe PSA bought the Ambassador Brand and Peugeot A from the Birla Group. Birla Group was also the owner of Hindustan Motors.

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