new delhi feb 10 the iconic brand ambassador which used to be a symbol of the high and mighty in power corridors has changed hands with hindustan motors selling it to european auto major peugeot for rs 80 crore the c k birla group firm has inked an agreement with peugeot sa to this effect as things stand the manufacturing of ambassador car has been discontinued hindustan motors has executed an agreement with peugeot sa for the sale of the ambassador brand including the trademarks for a consideration of rs 80 crore hindustan motors today said in a regulatory filing last month the psa group had inked a partnership with the ck birla group to reenter the indian market and earmarked an initial investment of 100 million euros around rs 700 crore to set up vehicle and powertrain manufacturing in tamil nadu the tieup entails two joint venture agreements between the companies of the two groups the initial manufacturing capacity will be set at about 100000 vehicles per year and followed by incremental investment to support a progressive rampup of the longterm project the manufacturing capacity for powertrains will cater to the domestic market requirements and global oems the performance of the industrial setup will be supported by a significant level of localisation in order to attain necessary cost competitiveness the company had said last month the longterm partnership will allow both companies to participate in the growth of the indian automotive market which is expected to reach 810 million cars by 2025 from the current 3 million in 2016 the psa group which sells three brands peugeot citron and ds is no stranger to india having entered into a partnership with the erstwhile premier family resulting in joint venture peugeot pal india however it pulled out of the jv in 2001 the group had made repeated attempts to return to the indian market in 2009 it decided to go slow on plans to kick off operations in india due to a global economic slowdown later in 2011 it announced plans to reenter the indian market with a midsized sedan 10 years after it had exited the country the plan however did not materialise the ck birla group is better known for the now discontinued iconic ambassador car that was manufactured by group firm hindustan motors it has presence in technology automotive home and building healthcare and education mss ard