Hindustan Motors is planning for the introduction of its grand launch, the Ambassador compact Sedan. This Ambassador model is going to have the same interiors as the earlier models. The lone change is expected to be in the exterior part with the boot removed to make the car's length under 4 meters. This change will help HM to make use of the exemption of excise duty given only to cars below 4 meter in length. The Ambassador will most probably be supported with the tried and tested 1.5 litre old diesel engine as neither the petrol nor the CNG variant of the lsuzu 1.8 ltr engine comes under the restriction of 1.2 ltr engine limit fixed by the Indian government policies for a car to be able to come under the category of compact Sedan. This has made the older 1.5 ltr engine a certainty.
However it will be worth noticing what measures does the company take to handle this problem. A common rail diesel engine is being developed by HM to power the next gen Ambassador cars but the chances of this engine to be ready for this current new version of the compact sedan are very meak. Moreover the segment of the customers which this car will be targeting is still not known. It could only be guessed that the car will probably target the customers who desire more economy and frugality.
It still remains to be seen as to why a potential customer opt for this compact sedan when there are many more options of stylish dynamic cars available in the market which have better designs as well as they offer higher performance levels. Competitors like Maruti Suzuki and Tata are launching or planning the launch of new cars which definitely have an edge over the Ambassador compact sedan. Some of them are Dzire compact sedan (introduced last week) from Maruti and the Manza compact Sedan from Tata and the Verito from Mahindra.