HM to launch new Compact Sedan based on Ambassador in next Fiscal

The homegrown automajor, Hindustan Motors, a CK Birla group company, is facing a serious crisis in the Indian car market. Earlier this month, the company launched the BSIV compliant Ambassador 'Encore' to revive some lost market share, which it lost due to lack of BSIV compliant powertrains. Now, it is planning to launch a compact car in the next fiscal.

The new sub-four meter small car will be a compact sedan, and will be manufactured on the Ambassador platform. The compact sedan will be cheaper than the Ambassador, thanks to its smaller length which will attract less excise duty. Hindustan Motors need to foray new vehicles in the market to offer wide range of cars to the buyers, which will surely help the company to regain its lost market.

Hindustan Motor's compact sedan is expected to house the same 1.5-litre BS-IV compliant diesel engine. The company might also launch the petrol version of the vehicle. It is also expected that the vehicle will be priced around Rs. 4-4.5 lakh in the market, and will compete against Maruti Swift Dzire, Honda Amaze and others.

The Ambassador Encore has been priced at Rs. 4.98 lakh, and the bookings of the vehicle have crossed the 450 mark, however, HM's targets 2,000 units per month. With its launch the sales of Ambassador has once again opened in 17 cities, where sale of BS-III cars had been banned since April 2010.