French automaker Peugeot has bought the Indian Ambassador car brand, with the intention to crack into an elusive market. The sale is for the brand alone, not the manufacturing plants used to build the cars so often seen on the streets all over India.
The transaction with Hindustan Motors puts India in the crosshairs for Peugeot finally, after unsuccessfully trying to penetrate the market previously to no avail. Reports had it that the Peugeot 3008 compact SUV would be the vehicle to infiltrate the Indian market, but Ambassador will be a much less risky venture.
Hindustan began manufacturing the Ambassador car in 1958, the first in India. Production ceased in 2014.
Peugeot bought the Ambassador car brand from Hindustan for 80 crore, or approximately $12 million. If you’re thinking that’s not a lot of money for a car company, you’re right.
In 2008, General Motors received a government bailout that was 1,000 times more, and that was only a small portion of the car company’s valuation.
What’s more, the Ambassador car brand is expected to re-enter the mid-budget car market with several variants, all hitting the 5 to 9 lakh price range. In terms of benjamins, that’s between $7,500 and $13,500.
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It puts Peugeot in the running to compete with the Hyundai Xcent, Honda City, Honda Amaze, Volkswagen Vento and many others. And if you don’t recognize those model names, don’t worry – they’re overseas models only.
Unless you’re taking a trip to Hyderabad or are searching for authentic butter chicken in the streets of India, you probably won’t find yourself behind the wheel of an Ambassador. There are plenty of other vehicle choices in India, and an Ambassador won’t be high on your list.
However, for Peugeot, it’s a big deal. The Indian car market is untapped for them. By purchasing an already recognized and loved car brand on the subcontinent, they’ve successfully got their toe in the door. Hundreds of thousands, if not millions, of additional vehicle sales are now possible where they once were not.
It’s also an indication of future ventures. With the introduction to the Indian car market, we could see overseas ventures onto the North American scene. That might be a fresh change too, especially if you’ve seen the Peugeot 3008 or the 208 Black Edition. Sharp, innovative vehicles that are exciting to look at and even more fun to drive.
Just please don’t bring us the Ambassador. Please.
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