Hindustan Motors had earlier announced a new plan which included a compact sedan based on the Ambassdor. It seem like the company is now testing the compact version and it could hit the markets in a couple of months.
The compact version of the Ambassdor will be shorter in length, under 4 metres and will qualify for the small car excise duty. The car will also get a tweaked engine with higher horsepower and torque.
The car could also be offered in the CNG option.
Image Source: Autocar India