Hindustan Motors (HM) has decided to sell iconic car brand - 'Ambassador' to France-based Peugeot S.A. 

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On February 10, 2017, Hindustan Motors executed an agreement with Peugeot S.S for the sale of Ambassador brand including the trademarks and certain related rights. 

Ambassador has been sold at a consideration of Rs 80 crore by CK Birla group-backed company. 

The company said, "The sale of the Ambassador Brand shall be effective upon fulfillment of the terms and conditions as prescribed in the said abovementioned agreement."

The brand has been in the CK Birla family for nearly seven decaded. 

Ambassador was launched in 1948, when Hindustan Motors introduced the Morris Oxford series II (Landmaster) in a new avatar with minor changes.

First 40 years of Ambassador was quite good, it had bagged market share of 75%. Things changed when Maruti Suzuki launched Maruti 800 in 1983. 

From 1983-1991, Ambassador's market share dropped by 20%. Later in 2014, HM decided to suspend Uttarpara - where Ambassador was manufactured. 

Meanwhile, this would be a second deal between CK Birla group and Peugeot. In 2015, CK Birla announced a voluntary retirement scheme for all permanent “grade-scale staff” and technicians with the french carmaker. So far, 645 employees have opted for it, said the annual report.