Death of the Ambassador?

Death of the Ambassador?

Ambassador_taxi_in_tiumalaWhile the Indian-built Hindustan Ambassador might be the “worlds best taxi” according to Top Gear, production has been suspended due to weak demand and a lack of funds for future development.

In a statement sent to Reuters, Hindustan Motors Ltd says it has suspended work at it Uttarpara Plant outside the eastern city of Kolkata, until further notice.

Hindustan also commented in the statement that conditions at the plant had worsened, citing low productivity, growing indiscipline, critical shortage of funds, a large accumulation of liabilities, and a lack of demand for the Ambassador which is its core product.

The company wants to restructure its organisation and finances, restrict the mounting liabilities and bring in a situation that is conducive to reopening the plant.

The glory days of being the first car to be made in India have long since passed for the Ambassador which began its life as a Morris Oxford. Despite being the favoured choice of politicians and bureaucrats in India, as well as Taxi operators.

However since Maruti Suzuki introduced the cut-price 800 hatchback in the mid-1980s and the further introduction of other Indian-built cars by other manufacturers in the mid-1990s, the Ambassador has lost its dominance in the market.

It has only sold 2,200 cars in the fiscal year ending March 2014, a minute share of the 1.8 million cars sold during the year in India.

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