Hindustan Motors' Ambassador brand, synonomous with a 1950s Morris Oxford recycled into top government official transport and taxis in India, has been sold to Peugeot for INR80 crore (US$12m).
The C K Birla group, which last month agreed a joint venture with PSA Groupe to produce and sell vehicles and components in the Indian State of Tamil Nadu by 2020, has just agreed the Ambassador sale to Peugeot SA as well.
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Hindustan, which also did manufacturing for Isuzu and Mitsubishi in India decided late in 2014 to stop Ambassador car production. Its board subsequently approved the sale of one plant and lease of another.
"Hindustan Motors has executed an agreement with Peugeot SA for the sale of the Ambassador brand, including the trademarks, for a consideration of Rs 80 crore," Hindustan Motors on Saturday said in a regulatory filing cited by Press Trust of India (PTI).
PSA previously had a partnership with the Premier family, resulting in a joint venture called Peugeot PAL India. However, it pulled out of that in 2001, PTI noted.
The group had made repeated attempts to return to the Indian market. In 2009, it decided to slow plans due to the global economic slowdown.
Later, in 2011, it announced plans to re-enter the Indian market with a mid-sized sedan, 10 years after it had exited the country. The plan, however, did not materialise.
