French carmaker Peugeot buys the Ambassador brand for Rs 80crore
New Delhi, Feb11:French carmaker, Peugeot, which recently came into a partnership with India’s CK Birla group to venture into the market, has also made a new procurement.
The company has bought the Ambassador brand from the ailing Hindustan Motors. The deal has been closed with Peugeot signing the dotted line for Rs. 80 crore worth of sum. Peugeot has also got the rights to the trademark Ambassador name in the deal, meaning that the company could now use the name for selling its products as well.
Hindustan Motors already ceased production of the Ambassador a few years ago in 2014, when the company felt that the dismal sales of the car were not sustainable enough to keep continuing producing the car. The Ambassador faced serious competition from new age cars, which came loaded with modern technology as well as with better safety equipment.
Peugeot has struck a JV with the CK Birla group to re-enter the Indian market, where it once used to play, in the form of the Peugeot Premier Automotive Limited (PAL) until the year 2001. The company then didn’t survive the fierce market competition and shut shop in India.
Peugeot had plans of making a comeback on its own, however, even that plan didn’t seem to work out and it couldn’t materialize setting up its plant, which was slated to come up in Gujarat. This new tie-up could be its earnest attempt in entering the Indian market and enjoying even a minor share of the huge chunk of automotive sales in the country, which are only destined to rise in the coming future.