Hindustan Motors is making an all out effort to save and retain its traditional brand Ambassador from exile. The trend does not favor this big car which has no room for technology and the feedback from the customers has been on low profile that the company sees a trough journey. The initial lot of this car was based on the 50year old Morris Oxford of Britain. Right from its inception to the market, since 1958, Ambassador had been the buyer’s choice till Maruti came to the fore some 35years ago. Recent debacle for Ambassador came from the global players like Hyundai Motor and Tata Motors.
These companies are offering cars with fuel efficiency and sleek outlook, said the experts from Marketing Consultancy. The scope of Ambassador on Indian roads is gloomy and HM is squeezing its mind to cater to the expectations of the customers by redefining it with retro design and cutting-edge tech, said its MD. The refined car will cost Rs5lakh –Rs7 lakhs and will meet the European emission norms and the car is expected to roll down in another one year. However, the industry analysts view HM’s effort as a last resort to make Amby survive in the highly competitive Indian market. HM could have a second life to its Ambassador brand provided it gets a nod for the new designing. This, the industry analysts feel, might be difficult to overcome for HM. HM is to retain the old suspension, platform and architecture but with the Isuzu engine so that the overhaul in complete form is to dignified. The gear-shifting is to be changed on par technology, refined upholstery and interiors.
The overall improvisation may not fetch more sale, probably not more than 2000 monthly units, from the current 600-700 said the industry experts. This will be a meager in the market which has the potential of 2 lakh monthly units. Still there are some experts who advocate the promotion of Ambassador despite the low profile. They say Ambassador has the niche to comeback with its design change and meeting the standards of technology. The brand image is to be focused coupled with superior features and technology, they feel.
HM has already faced a loss of Rs43 crore during the last FY and it has the mandatory to disclose its position to Board for Industrial and Financial Reconstruction worth 50%. HM is in the market with the associated brands like Mitsubishi for Lancer, Cedia and Pajero. The company hierarchy too faced problems following the exit of its top notch officials. Amby has to learn its lesson from the Royal Enfield which revived the status of its Bullet from the scorching loss.