While one will be an upgraded version of existing model fitted with latest gadgets and plush interiors, called the Ambassador Grand, the other will sport a new front and back shape. "It will be in a classic style," says HM managing director A Sankara Narayanan. The model will be priced at around Rs 4 lakh.

According to him, the classic model will run on an Isuzu engine (1.8-petrol and 2-litre diesel) and will be launched this September. "No major additional investments have been made except in some tooling. The bonnet and head lamp shape will be new and the car will come in metallic colours."

HM is targeting the personal use segment with its classic model as the existing Ambassador cars are predominantly used by the tourist taxi segment. The Ambassador Grand will be available in the showrooms soon. Narayanan says the formal launch will be in New Delhi, where the company is headquartered. HM sells around 1,300 Ambassadors per month.

The company, which launched the Pajero, the most popular sports utility vehicle in the world some time back, is selling around 20 units per month. "Its price is the barrier," says Narayanan. Similarly, the premium Lancer car sales are also on the low key with 400 units per month.

The sales of the company''s van, the RTV, are on the rise (100 units per month) with demand coming from school bus and ambulance operators. "The cargo variant is also picking up," says Narayanan.

According to him, the engine and gearbox supplies to Ford India are going up steadily though he declines to provide the numbers. "The engine plant is a QS-certified one and we are in the process of getting Q1 certification from Ford."