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Hindustan Motors To Source Fiat MultiJet Engines For Ambassador?
If there is one aspect of Hindustan Motors which we admire is its resilience. One of India's oldest automaker has been selling just one model, the iconic Ambassador, for a really long time and despite a whole host of challenges HM has managed to hold on to a small pocket of loyal customers.
However, it will only be a matter of time before the outdated Amby loses the battle. After all, you can only survive so long with a knife in a gunfight. The new Ambassador Encore uses a BS4, 1.5 liter engine which made it possible for HM to restart sales. However, the engine is vastly underpowered compared to competition - the engine only develops 49 HP @ 4,000 rpm and 112.5 Nm torque @ 2,000 rpm.
Also Read: Ambassador Encore Launched In Kolkata
The only way for HM to survive is to modernize. But the relatively minor Uttarpara, West Bengal based automaker does not have the resources to develop a brand new engine. The only other option is to source engines from other automakers. And according to HT, that's exactly what HM is planning to do.
HM is reportedly in talks with Fiat to source its Multijet engine. And though Uttam Bose, MD, HM has denied to admit it yet has has informed ET that announcements will soon be made. As we all know, the company will launch a sub-4 meter Ambassador next year and this will be a modern car, unlike the regular Ambassador, which they hope will appeal to younger buyers.
Related: A Compact Ambassador Coming In 2014
During the 2012-13 financial year HM managed to sell just 4,000 units of Ambassador. Hopefully, with the introduction of the BS4 engine the company hopes to take that number up to 6,000 by the end of this financial year. HM's facility in WB is vastly underutilized at present and the 70 percent of the few Ambassador's which sell are taken consumed by the taxi market.
HM will look to change the taxi car image with the upcoming sub-4 meter Ambassador. The new generation smaller Amby, with a Fiat engine and modern features will be targeted towards semi-urban and rural markets rather than the metros and major cities.
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