- Hindustan Motors (HM) launched India's first car, the Ambassador, in 1942 which dominated the market for 40 years until the 1980s. - The launch of the Maruti 800 by Maruti Suzuki in 1983 at a significantly lower price caused Ambassador's market share to drop from 75% to 20% between 1984-1991. - Increased competition from foreign competitors entering the Indian market after economic liberalization in 1991 along with changing consumer preferences for modern and technologically advanced vehicles contributed to the decline of HM and the Ambassador brand.

2. • First Indian automobile co. to start production in 1942
• Part of the Birla Group
• Market leader till 40 years after inception
• Ambassador- first ever car made in India.

3. • Modelled after the British Morris Oxford series III
• Suited for Indian roads and conditions
• Until the 1980s the highest selling car in India
• Almost every car sold was an Ambassador
• Driven on the Indian roads for the longest period of time
• Fondly called ‘The King Of Indian Roads’
• Choice of bureaucrats and politicians

4. • Launch of Maruti 800 by Maruti Suzuki in 1983
• Significant cheaper price of Maruti 800- blow to
Ambassador’s position
• Drop in market share from 75% to 20% from 1984 to 1991
• Indifferent to demand for modern technology and style

5. Strength
• Large Distribution
network
• Sturdy car
• Spacious
• Authentic Indian car
• Recognized brand
Weakness
• Low technological
innovations
• High price
• Slow decision
making process
• Resistance to
change
Opportunities
• Expand export base
• Invest in
technological
advancement
Threats
• Increased
competition
• Changing consumer
demand

6. New
entrants
• Entry of MUL with cheaper car and entry of foreign competitors after
liberalization in 1991
Suppliers
• Increased due to increase in other players in the market
• MUL
Buyers
• As the number of options available to consumers had increased. They had
cheaper and more advanced products available in the market
Substitute
s
Competitor
s
• There were cheaper substitute available like two wheelers
• Increased sales of foreign competitors led to downfall of HML due to
product differentiation and price leadership

7. Strength
• Aesthetic looks
• Fuel efficient
• Compact
• Affordable
• Latest technology
Weakness
• Inexperienced
• No diesel variant
Opportunities
• Untapped hatchback
market
• Price sensitive
customers
• Growing middle class
Threats
• HML launching a
similar variant

8. Existing
competition
Threat of
new
entrants
Bargaining
power of
buyers
Threat of
substitutes
Bargaining
power of
suppliers

9. Value
Rare
Inimitable
Organisation

10. • Design- aerodynamic
• Market components
• Improve customer service
• Refurbish Ambassador

12. Top Gear hails Ambassador as the
best taxi
Top Gear video