Ambassador – Riches to Rags…..Is Competition the Culprit?

Code : ECC0057

Year :
1897 - 2016

Industry :Automobile

Region : India

Teaching Note: Available

Structured Assignment : Not Available

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INTRODUCTION: In 2014, the iconic Ambassador car, a product of Hindustan Motors Ltd., (which was carrying forward the legacy of Morris Oxford) which had dominated the Indian car market for decades, ceased to exist. From 1958 to the early 1980s, the Ambassador had enjoyed a near monopoly in the Indian passenger car market with over a 70% market share. But in March 2014, its market share slipped to a mere 0.12% and the company ultimately decided to suspend production on May 25, 2014. Fiat, the maker of the Premier Padmini car, the only competitor for the Ambassador in the 1970s and 80s, had also stopped production of the Padmini in 1999. However, even as old models such as the Ambassador and the Premier Padmini were seeing a downhill journey, the market for cars in India was growing steadily...

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