Hindustan Ambassador production halted – the end?

hindustan-ambassador-1

According to various reports, Hindustan Motors has suspended production of the Ambassador at its Uttarpara, West Bengal plant, where it has been built since 1957. Reasons given by Hindustan include low productivity, lack of demand, a shortage of funds, an accumulation of liabilities and “growing indiscipline.”

A true Indian icon, the Amby is based on Britain’s long-defunct Morris Oxford Series III. In its heyday it was a status symbol that represented the aspirations of India, being the vehicle of choice for nearly all government officials and politicians. Hindustan held a 70% share of the country’s car market at the time.

Today, thanks in part to market liberalisation, many state authorities have switched to more modern vehicles, although the grand old lady remains a popular taxi, especially in Calcutta – where do you think Dr Bombay got the inspiration for his 1998 smash-hit from?

Over the years, India’s oldest-surviving carmaker has updated the Amby many times in an attempt to keep it relevant – including giving it a substantial facelift in 2004 with the Ambassador Avigo (below) – but growing concerns of late, mostly regarding fuel efficiency and safety, have pretty much sealed its fate.

hindustan-ambassador-2

Sales have reportedly plummeted from 24,000 cars a year in the 1980s to under 6,000 in the 2000s. Last year, Hindustan sold only 2,200 of these anachronisms – really not a lot when you consider 1.8 million passenger cars found Indian homes that year.

And it’s not just its beloved Amby – Hindustan Motors has reportedly accumulated losses exceeding its net worth, and is looking for investors. Output at Uttarpara has apparently been down to five cars a day.

“The suspension of work will enable the company to restrict mounting liabilities and restructure its organisation and finances and bring in a situation conducive to the reopening of the plant,” the carmaker said in a statement.

From Cowley to Calcutta. Here’s to you, Amby-ji.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • abuya on May 28, 2014 at 2:11 pm

    Wow… kan best… ada duit dan capabilitiy, beli baru sebijik for collection.

    Like or Dislike: Thumb up 4 Thumb down 0
    • Rugi Besar on May 28, 2014 at 3:14 pm

      Wow, betul kah Proton rugi besar sebanyak RM821juta ??!! Macam tipu jer berita nie ! Proton tak pernah bagitau rakyat pun !!

      Analysts neutral to positive on Mahathir’s appointment
      By Kamarul Anwar of theedgemalaysia.com Thursday, 22 May 2014 11:50
      http://www.theedgeproperty.com/news-a-views/12602-analysts-neutral-to-positive-on-mahathirs-appointment.html

      KUALA LUMPUR: Analysts following DRB-Hicom Bhd were neutral to positive on the appointment of Tun Dr Mahathir Mohamad as non-executive chairman of national carmaker Proton Holdings Bhd, a wholly-owned unit of the diversified group.

      Investors appeared indifferent as the counter closed a marginal two sen or 0.82% lower yesterday at RM2.42 per share.

      The counter saw 391,500 shares changing hands and was traded to a high of RM2.46. In contrast, DRB-Hicom’s shares closed two sen higher on Tuesday with a lower trading volume of 138,000.

      Some analysts, however, were positive about Mahathir’s return to steer the beleaguered carmaker given the various challenges it is facing.

      “We view Mahathir’s appointment as chairman of Proton as positive for DRB-Hicom, as we believe his clout within the government and auto industry will be beneficial for the automotive maker,” Public Investment Bank analyst Lee Wee Sieng said in a report yesterday.

      The research outfit has retained its “outperform” rating and on DRB-Hicom. It is also maintaining its target price at RM3.40.

      “In addition, Proton’s global small car (GSC) which is expected to be launched in the second half of this year (delayed from April 2014) will likely be a game-changer for Proton,” said Lee.

      Mahathir, who conceived the concept of the national car in 1979 as part of his administration’s efforts to spur the country’s industrialisation programme, could use his political clout to slow down the liberalisation of Malaysia’s automotive sector and in effect, protect Proton from debilitating blows that other carmakers could bring, said analysts.

      Proton was set up in 1983 and through a joint venture with Japanese carmaker Mitsubishi, it launched Proton Saga in 1985.

      In the mid-2000s, Proton lost market share amid a competition industry landscape. It was taken over by DRB-Hicom in 2012.

      !!!!! —>>> Filings with the Companies Commission of Malaysia showed that Proton’s net loss for its financial year ended March 31, 2013 (FY13) was RM821.4 million, more than 35% higher than the previous year’s net loss of RM606.3 million.

      An analyst, who declined to be named, said Mahathir could be the right individual to spur changes in Proton.

      “Mahathir is the pioneer in Proton; it was his brainchild. As Proton is going through a restructuring process, Mahathir — who has been with Proton since Day One — could be the right man to call the shots.

      “Proton recently named a new chief executive officer as well (Datuk Abdul Harith Abdullah). He is seen to be an outsider. The employees might be more willing to listen to someone who is seen as a Proton man through and through,” the analyst said.

      Another analyst, however, said that at worst, Mahathir’s emergence could be neutral to Proton.

      “Mahathir had already been an adviser to Proton (from 2003). Has there been any improvement in its cars?” asked the analyst. “The chairman does not create the product. Proton’s problem lies with its products.”

      Bernama reported yesterday that Proton had appointed Mahathir as its chairman effective May 16. The former prime minister has also been named as chairman of Proton’s subsidiary, Group Lotus plc.

      Mahathir will assume the post from Tan Sri Mohd Khamil Jamil who is stepping down as executive chairman, but will remain on the board of directors of the company.

      Proton said in a statement that Mahathir’s determination to see the national carmaker succeed made it natural for him to step in as chairman, in what would be a new chapter in the company’s journey.

      “Dr Mahathir will now be able to dedicate more of his time to Proton as chairman. This will certainly continue to strengthen the company in its mission to become a globally recognised automotive player,” said Proton chief executive officer Abdul Harith Abdullah.

      Mohd Khamil who is also DRB-Hicom group managing director, said Proton is honoured by Mahathir’s acceptance to serve as chairman.

      Like or Dislike: Thumb up 3 Thumb down 22
  • calcutta on May 28, 2014 at 2:56 pm

    this is what happened when u don’t keep up with the modern world
    what you do when you have 70% market share?sit there and expect it to grow?

    Like or Dislike: Thumb up 27 Thumb down 0
  • Tongkat Survivor on May 28, 2014 at 3:03 pm

    Proton says will ‘survive’ greater competition in new auto policy
    The Malay Mail Online, 20 Jan 2014

    Tan Sri Khamil Jamil, the chairman of Proton, also said today that Proton was not ‘for sale’. — Picture by Choo Choy May

    KUALA LUMPUR, Jan 20 — National carmaker Proton insisted today it will “survive” the greater competition from foreign vehicle producers now that the government has liberalised the auto industry to woo others into the market, under new guidelines in the revised National Automotive Policy (NAP) 2014.

    Tan Sri Khamil Jamil, the chairman of Proton, said the company — which critics have seen as heavily relying on the government’s past protection from competition — will grow further.

    “Proton will continue to survive and be stronger and better,” he told reporters today at the unveiling of the National Automotive Policy (NAP) 2014 here.

    He later disagreed that Proton was “for sale”, saying that the company had undertaken “structural changes” and “structural improvement”, but did not provide further details.

    “I believe, like what the minister has said, Proton is still very relevant together with Perodua, two national automotive companies that will play a vibrant and focal role to enhance the local automotive industry,” said Khamil, who is also the managing director of DRB-Hicom Bhd, which is the sole owner of Proton.

    Earlier, International Trade and Industry Minister Datuk Seri Mustapa Mohamed acknowledged that Proton has been facing stiffer competition than before as the car market becomes increasingly liberalised.

    Mustapa said the government did the “right thing” when it set up Proton in 1983, but noted that the country’s inking of free trade agreements with the Southeast Asian region and countries like Japan and Australia was opening up the car market.

    “At present, the market is becoming more and more open because of AFTA, ASEAN, cars are imported duty-free, so the market is more liberalised now,” he said.

    Mustapa said that MITI previously controlled car prices to protect Proton, but said it was now dictated by market forces which will result in a competitive industry.

    “There was a time when car companies have to come to MITI for approval to set prices, that was to protect Proton, but the policy has been dismantled in 2004,” he said.

    Mustapa also said Proton has undergone changes in the past few years in a bid to be more efficient and competitive.

    Today, Khamil touched on Proton’s plans to produce energy efficient vehicles (EEV), saying that it was already in partnership with carmaker Honda Malaysia Sdn Bhd.

    Honda, in which Proton owns a stake, has committed to pouring in RM 1,000 million to build hybrid cars in Malacca.

    Proton is also working on its own EEV model, Khamil said.

    “We are on track, hopefully by end of 2015, we will see some results for Proton,” he said.

    Even before the NAP’s unveiling today, three car companies had already agreed to invest in EEV production here — including Honda, Perodua’s RM1,300 million investment and Mazda’s RM300 million investment.

    Like or Dislike: Thumb up 1 Thumb down 16
  • 2200 units consider a lot la compared to Preve or Suprima S average figure.

    Like or Dislike: Thumb up 18 Thumb down 11
  • Eurocar on May 28, 2014 at 3:15 pm

    Thank god. Goodbye to this british rubbish.
    Hindustan Motors has managed to sap on those poor stupid Indian folks for so long with this old rubbish banger. Now it is time to pay the piper for greed, voracity and arrogance.

    Like or Dislike: Thumb up 19 Thumb down 2
  • samlok on May 28, 2014 at 3:18 pm

    unbelievable can drag so long.

    Like or Dislike: Thumb up 15 Thumb down 0
  • Lousy car!

    Like or Dislike: Thumb up 7 Thumb down 1
  • Julian Lee on May 28, 2014 at 4:11 pm

    BMW better!

    Like or Dislike: Thumb up 7 Thumb down 3
  • Whatever said, this model survived for so many years.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Aero Macai on May 28, 2014 at 4:19 pm

    Hindustan Motors = the Indian version of Proton?? HA HA HA HA

    Like or Dislike: Thumb up 22 Thumb down 6
    • Aero Macai, Proton is 1000 times better than this amb. only thing this car is bulky and the engine comes with damn old technology with high fuel consumption.

      Like or Dislike: Thumb up 6 Thumb down 12
  • guan eng jr. on May 28, 2014 at 4:40 pm

    indian loves this car for its reliability and superior quality.

    Like or Dislike: Thumb up 6 Thumb down 0
  • shawn on May 28, 2014 at 4:41 pm

    why not start to export to other country with good and reasonable prices … as classic taxi ?

    Like or Dislike: Thumb up 5 Thumb down 0
  • Josh Ling on May 28, 2014 at 5:53 pm

    why only produced one car model? they had had the rights to produce the whole thing already right, why didn’t they come up with something new or simply expand that chassis into more variants to capture more markets.

    sometimes being the market leader for so long also does have its own consequences.

    Like or Dislike: Thumb up 0 Thumb down 0
  • DrCooper on May 28, 2014 at 5:55 pm

    how can FC is not good in that car…it doesn’t have side mirror..drag must be super low !

    Like or Dislike: Thumb up 2 Thumb down 1
  • Black on May 28, 2014 at 7:12 pm

    How bout a new body with retro looking like mini?

    Like or Dislike: Thumb up 2 Thumb down 0
  • x-city on May 28, 2014 at 8:45 pm

    Just give the pattern to BMW, sure they can make better updated model see what they have done to the MINI and BETTLE

    Like or Dislike: Thumb up 1 Thumb down 4
  • Indian museum in the making….The End

    Like or Dislike: Thumb up 0 Thumb down 0
  • revive on May 29, 2014 at 10:25 am

    Give to Mitsuoka!

    Like or Dislike: Thumb up 3 Thumb down 0
  • perhaps a sv version of it will safe their life.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required