Kolkata based Indian automotive car manufacturer Hindustan Motors fail for various reasons in these ppt I am trying to touch all key points of failure once pride of India . The amby was a very successful car which was designed for India. These car ruled Indian roads for more than six continuous decades. Huge competition in the automobile industry and popular Ola and Uber and several another reasons like poor after sales service, high pricing, spare parts in availability, low productivity and extreme trade unionism, low investment on advertisement and brand building and there a lot of reasons behind its failure. Just watch the ppt I think you gain some interest about these company and the failure story once well known company and I think these ppt help some new startup business people to noticed the drawbacks so that they can avoid these and grow happily their business. Take Care & ALL THE BEST :)

1. Reason behind HINDUSTAN MOTORS fall
The King of Indian Road

2. Company Profile
Hindustan Motors is an Indian automotive
manufacturer based in Kolkata.
It is a part of the Birla Technical Services industrial
group.
Hindustan Motors was the producer of the
Ambassador motorcar, which was once a
mainstream car in India, based on 1956 Morris
Oxford series III and was in production from 1957
until 2014.
The company was the largest car manufacturer in
India before the rise of Maruti Udyog.

3. Keyto SuccessfulLongjourney….
Kingof IndianRoad
The amby was a very successful car which was designed for
India. It is the pride of India. These car ruled Indian roads
for more than six continuous decades. The reason behind
its long success are -
 Simple engine and electricals
 Robust structure
 Very high gauge iron sheet
 Low maintenance cost
 Ease of availability of spare parts
 High safety, security and Comfort
 Easily affordable rather than Premier Padmini, Maruti
Omni in 80’s century in India

4. Models
Hindustan Motors has launched 6 models and version
of Ambassador car –
 Mark I ( first Generation) (1957-62)
Mark II (second Generation) ( 1962-75)
Mark III (third generation) ( 1975-1979)
Mark IV ( fourth generation) ( 1979- 1990)
 Ambassador NOVA (fifth generation) (launched in
1990- 99)
 Ambassador 1800ISZ, Classic
Ambassador Grand (final generation) (2003-2014)

5. What Made it Click
• Hindustan Motors was the oldest car manufacturer in India
and of course in these time they have ruled the market.
Well, though British origins, the ambassador was
considered as a Indian car and called this car the “king of
Indian Roads”
• It was one of the first diesel cars India and one of the first
to have air conditioning car
• It was a status of richness and definition of luxury cars
during these days.
• The ambassador car used to be one of India’s most
prestigious vehicles beloved by government ministers.
• Recently at the Beaulieu’s World top gear Motor sports
show, our Indian ambassador was crowned as the best taxi
in the world

6. Reason behind Failures
Production of the Ambassador ceased on 24 May 2014.
 Hindustan motors faced serious competition for the first time in 1983
when Maruti Udyog Limited in collaboration with Maruti built Maruti
800 which was a better looking model and had better fuel efficiency.
 In the 1991 PV Narasimha Rao led Government of India ushered in an
era of liberalization in India. Foreigners were permitted to invest in
India. Many international manufacturers started setting manufacturing
plants in India. These companies offered better looking products,
which were fuel efficient, comfortable and had innovative features
 Hindustan motors did not invest much in brand building and
advertising whereas it rivals had huge budget for these activities. As a
result Ambassador had a poor recall value.
 Pricing was another issue with the ambassador. At around Rs.4,80,000
per car it was comparatively expensive against competitors which
offered better products at the same or lower price.

7.  Poor after sales service was also hurting Hindustan Motors. In
fact when the brand was doing well the average waiting time
for delivery of car post sales was more than 12months.
 Poor employee productivity and excess staffing also hurt.
Major Ambassador plant was notorious for low productivity
and extreme trade unionism. Productivity at Hindustan Motors
was way below the industry level.
 Hindustan Motors tried entering into Light Commercial Vehicle
segment by launching Winner mini trucks and SUV segment
with Montreo and Outlander around 2008 but these proved to
be too little too late and did not yield the desired results for the
company.
The company sold about 2200 ambassador in the fiscal year ended
in March 2014,
According to industry data, a tiny share of the 1.8million
passenger cars sold during this year in India.

8. Strategic Failures
Product: The product itself had some major issues,
which if resolved would have saved the company
from its doom.
Price: Since price is often considered a proxy for
quality and vise versa, the company failed to judge
the market and price its product competitively
against the new competitor.
Promotion- the company did not advertise its USP
correctly and thrived on word of mouth publicity.
Places- Ambassador was never available freely as its
competitors’ products, with not more than one
dealer in the sub major cities.

9. The ambassador and premier padmini may seem outdated
in today’s contemporary ecosystem of Ubers and Olas
but are still nostalgic reminders of an era gone by.
Nothing can be done now so let’s bid goodbye to a
memorable vehicle that bites the dust.

10. Raima Dutta
MBA- HRD
Roll : 09