CK Birla Group agency, Hindustan Motors Ltd on Tuesday stated it has agreed to promote its ‘Contessa’ model to SG Corporate Mobility Pvt. Ltd for an undisclosed sum.
The firm has executed a model switch settlement with SG Corporate Mobility Pvt. Ltd on June 16, 2022 for the switch of the Contessa model, together with the logos having utility quantity and sure associated rights of the model, Hindustan Motors stated in a regulatory submitting.
The switch of the model shall be efficient upon fulfilment of the phrases and circumstances as prescribed within the settlement, it added.
Contessa was a premium sedan offered in India by Hindustan Motors throughout the Eighties to early 2000s. It was positioned above the corporate’s then standard mannequin Ambassador.
While it succeeded in making a mark for itself available in the market, the entry of gamers like Maruti Suzuki, Hyundai, Ford and others within the Indian market posed a stiff problem to the model, which it couldn’t face up to and led to its phasing out.
The competitors from international gamers additionally hit Hindustan Motors badly, which has shut its manufacturing unit at Uttarpara in West Bengal since 2014 and stopped manufacturing of the Ambassador automobile as properly. The Ambassador model was then acquired by French automaker PSA Groupe (now a part of Stellantis) for Rs. 80 crore in February 2017.