Hindustan Motors roars to celebrate deal of Amby with Peugeot

Kolkata-based veteran car maker, Hindustan Motors is selling India's vintage brand 'Ambassador' to French-based car maker Peugeot for Rs 80 crore. Investors took this news positively to push the shares of the company to as high as Rs 12.9 from its Friday closing level of Rs 11 per share.

It has been more than half a century since the country is seeing this car with a flat bench-type back seat and a curvy big boot with a sun shield over the front windscreen, known for its legacy and comfort, widely used by ministers. Reportedly, Kolkata's taxi operators are the biggest customers of this brand.

Hindustan Motors had earlier declared that it has closed manufacturing units of Ambassadors, post its last rolled out unit from its Uttarpara plant in West Bengal. The workers were also sent on voluntary retirement after shutting down the production. And now, the company has finally updated about selling its brand 'Ambassador' to Peugeot. 

The company has lost its shine over the period of time due to the continuous technological advancement in the industry. However, it would be interesting to see if the French company attempts to revive the brand to match the trends and provide a mix of both high-end technology and traditional comfort for which Amby is known. 

Reacting to this news, the shares of Hindustan Motors, soar more than 17 per cent to make a high of Rs 12.90 per share with over six times more volume than its 30-day average volume, during the trading session on Monday.