All the Ambassador fans you have a reason to rejoice as PeugeotPeugeot is set to relaunch the iconic Indian brand by Hindustan Motors in a new form and obviously at a new price.
As Rajeev Shah, managing director and chief executive officer, RBSA Advisors, puts it out,
“Peugeot wanted to acquire the Ambassador brand and launch it as a state-of-the-car targeted at the mid-market segment. Every year, 40-50 models of passenger vehicles are launched in India. The Ambassador brand, on the other hand, is deeply ingrained in the psyche of consumers. Peugeot would like to make it the Rolex of cars. According to the contours of the arrangement, Peugeot had acquired not just the mother brand Ambassador but all its variants as well.”
He further clarified,
“The deal made sense for Peugeot because building a brand in India, which is already cluttered, would cost many times over the deal size for the Ambassador.”
The brand Ambassador was said to be sold to Peugeot for around 80 crore, where the price tag for the new model could be from 5.5-6 lakh and go up to Rs 9 lakh. In 2011 Peugeot had already made an unsuccessful attempt at the entering the huge Indian Consumer Market, however their dream seems to becoming true in the form of CK Birla group as they are the owners of this iconic brand.
PSA will also set up an equal joint venture with AVTEC, also formerly part of Hindustan Motors, for manufacturing and supplying power-trains. The initial outlay between the C K Birla group and PSA is pegged at Rs 700 crore.