Hindustan Motors, the maker of the Ambassador, have ceased production of this iconic car, at its factory in Uttarpara, West Bengal. Very low productivity, growing indiscipline, critical shortage of funds, lack of demand and large accumulation of liabilities were the reasons mentioned.
The Ambassador was first launched in 1958. It was based on the British car- Morris Oxford. It soon became India's best selling car and was nicknamed 'the king of the roads'. It used to be the only choice chauffeur-driven car for the politicians and senior government officials until more swankier car came by.
Sales that were as high as 24,000 units a year back in the 70s and 80s had dropped to less than 6,000 in the 2000s. Recently, the production has averaged to about five units per day.
However, the Amby still serves as a memoir for taxi drivers, politicians and tourists in the country. The company had recently launched a BS4 version of the Amby but only for the Kolkata market. HM was also considering launching a sub-4m version of the Ambassador however it now looks unlikely. Apart from the Ambassador, HM also used to manufacture the Winner mini truck at the Uttarpara facility.