India’s Ambassador car sold to Peugeot for RM53 million

Monday, 13 February 2017

New Delhi: India’s Hindustan Motors has sold its Ambassador car to France’s Peugeot for just US$12 million (RM53 million), capping a spectacular downfall for a vehicle once emblematic of the country’s political class.

The CK Birla group, the owners of Hindustan Motors, have sold the car brand for 800 million rupees (RM53 million) to the French auto makers, a company spokesman confirmed yesterday.

Hindustan Motors, India’s oldest car maker, stopped production of the Ambassador in 2014 citing debt and lack of demand for the vehicle which was designed on Britain’s long-defunct Morris Oxford.

The plant stopped production nearly 3 years back. The plant has been closed since.

Last month, the Birla group had signed a separate agreement with Peugeot to set up two joint ventures with production capacity initially estimated at 100,000 vehicles per year by 2020.

The PSA Group, which makes Peugeot and Citroen cars, said at the time it had not yet decided which model it will build in India.

The curvy Ambassador once ruled India’s roads and for years was the only car driven by politicians and senior government officials.

Source by: Internet

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