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India's Fave Car Ambassador 2.0 In Electric Avatar, Courtesy Peugeot – Benzinga – Benzinga

Hindustan Motors' Iconic Ambassador, once called the 'Wheels of India,' is all set to make a comeback in a new electric vehicle avatar.
What Happened: According to a TOI report, a joint venture between Hind Motor Financial Corporation of India (HMFCI) and French carmaker Peugeot is working on the design and engine of the car, which once ruled the Indian markets.
The report pointed out that the new model of the Ambassador will be called 'Amby' and be manufactured at Hindustan Motors' Chennai facility, operated by CK Birla Group affiliate company HMFCI.
Hindustan Motors Director Uttam Bose told the publication that work is underway on the new look of the car. "Mechanical and design work for the new engine has reached an advanced stage."
The car is expected to hit roads in at least two years.
Ambassador was the lone mass-produced luxury car in the market and was considered a status symbol in India in the late 1990s. However, the renowned vehicle brand's demise was a dramatic one after the company had to halt production in 2013-14 when its annual sales declined from over 20,000 units in the mid-1980s to under 2,000 units.
The company in 2014 claimed a massive debt and a lack of demand, and later in 2017, sold the car brand to the French automaker Peugeot for INR 80 crore (approx $10 million).
Why It Matters: This comes at a time when electric vehicles in India have been on a rising trend, with the overall number of vehicles witnessing over a three-fold jump in the last fiscal year.
There has been fierce competition in the EV segment with homegrown auto giants such as Tata Motors Limited TTM and Mahindra & Mahindra (OTC MAHMF) looking to establish themselves as reputable players. Many global companies, including Fisker Inc FSR, Triton EV, and Tesla Inc TSLA, are also eyeing to penetrate what is one of the largest auto markets.
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