HM to source new diesel engine for Ambassador

Hindustan Motors, one of India's oldest car maker, may source a new diesel engine from foreign suppliers, to replace the existing engine with an all new 1.5 liter engine in its popular Ambassador model. At present, this existing 2.0L engine is undergoing tests at the ARAI.

The petrol, CNG and LPG engines of Ambassador have been upgraded to make them compatible to the new BS-IV emission norms. The company is aiming to sell around 1,000 Ambassadors per month and working hard to update it as per the demands of new age buyers.

The company had recently announced on that it will soon report to the BIFR (Board for Industrial and Financial Reconstruction) as company's net worth has wiped-out by 50% after reaching the peak in the preceding four years.

Sales of the HM has gone down to a very low level, as Maruti, which started sales 41 years after Hindustan Motors, last year sold more cars in a week than the annual sales of Hindustan Motors.

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