Hindustan Motor (HM) Ambassador, one of the India’s most successful cars of 1990s, was considered as an iconic model in the auto industry for many decades. However, significant advancement in technology limited the sales of the vehicle to just hundreds, considering the figures of ongoing fiscal. In the present scenario, the brand is struggling hard for its existence, which is complemented by the uncertainty of the much-hyped new avatar of Ambassador, which was scheduled to sparkle at the Indian shores somewhere in 2012.
It must be noted that HM was used to deliver around 18,000 units annually in 1995, a year prior to when several oversees auto makers started foraying in the Indian auto industry. Presently, India can be considered as an automotive hub globally, since most of the international auto majors are present in the same. Considering the sales records of HM in fiscal 2012, the domestic player was able to deliver around 2,500 units and in the current financial year, the company has only made up to sell just 400 unit of its Ambassador.
Main reason behind the fallout of Ambassador among prominent sales chart is refereed to the absence of its BS-IV compliant diesel engine. From April 2010, the regulation of BS-IV compliant models has been made mandatory in 13 major cities of the country. The move from the government was a major blow for the auto maker as its sales were almost halved, right from 10,097 units in fiscal 2011 to 5,139 units in fiscal 2012. Considering the volumes of Ambassador in the above figures, the sales of the model were clocking close to 2,500 units in fiscal 2012 against 6,770 Ambassadors delivered in the year-ago period.
Reportedly, from the abovementioned sales, a major number accounts from the taxi segment of Kolkata. As per the Managing Director of HM, Uttam Bose, “West Bengal contributes about 40 per cent of Amby's total sales, mostly comprising yellow taxis in Kolkata”
It is believed that a refreshed model of Ambassador will be re-launched in the Indian auto industry with few cosmetic changes. Analysts believe that the move from HM will surely help it lure young buyers. However, the deadline of the project was in 2011 but the company was unable to achieve it. In its annual report, the company clearly stated for the second consecutive year that it will introduce a new variant of Ambassador in India. Individuals close to the development process have affirmed that the project has reached to its edge and the curtains from the same can be pulled off anytime soon.
Without revealing his identity, a source close to the process quoted, “A Pune-based designing company was roped in for the project. But, I do not think HM will be able to come up with the same at least at this point of time, given the working capital crunch.” Responding to the statement, the HM’s spokesperson commented, “We do not comment on speculation.”
