French automaker, Peugeot has announced the acquisition of India’s iconic car brand name Ambassador and trademark from Hindustan Motors in a deal worth Rs. 80 Crores.

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India’s oldest iconic car brand, the Ambassador has been sold to PSA Group for a sum of Rs. 80 crore.

Interestingly in 2006 a TV Commercial (below video) was released where it showed a man remodeling the Ambassador to make it resemble a Peugeot 206. Talking about the deal, it is still not clear if Peugeot would bring in a new-generation of the Ambassador or relaunch the brand as a retro-lifestyle offering with an all-new car, à la BMW’s Mini and even if it does, will it be manufactured at Hindustan Motors’s Uttarpara plant in West Bengal.

The Peugeot was a first foreign car manufacturer to enter India in September 1995, after Indian government opened up investment from MNCs. After several unsuccessful attempts, the French company has now confirmed that it will return to India through a joint venture with CK Birla Group (owners of Hindustan Motors) by 2020. These joint ventures cover manufacturing, distribution of vehicles in India and a powertrain manufacturing unit.

Putting an end to all the rumors, the PSA Group has already stated that the brands and the cars that it plans to bring to India have not been finalised yet.

 
Commenting on the deal, Hindustan Motor, spokesperson, stated in an official statement;

“We have executed an agreement with the PSA Group for the sale of the brand Ambassador, including trademarks. Ambassador has been an iconic brand and a surplus asset with us. We were looking for a suitable opportunity and found the right buyer in the PSA Group. We intend to use the proceeds from the sale in clearing dues of employees, lenders and other outstandings.”

 
To read more about Hindustan MotorsClick here

 

Also see: 12 reasons why India’s most favorite car is still the Ambassador