Company officials were not available for comment on price tag of the new Ambassador. The existing version is priced over Rs 3 lakh.

It is understood that the HM management has incorporated some cosmetic changes in the car, in addition to upgrading its engine power and incorporating the multi-point injection system.

Executive vice-president R Santhanam had told The Financial Express at an earlier interview that the components of the existing models have undergone two rounds of change since 1993. The new model is expected to have certain components which have been upgraded for the third time since 1993.

A company press release issued by the company's media consultant, noted that the Euro-II complaint engines will be also available shortly. It says that thecompany' engineers of its research & development cell at Indore, are currently conducting development trials to upgrade both the diesel and petrol versions to the Euro-II level.

However, its media consultant was tight-lipped on the date of the probable launch of the Euro-II complaint Ambassadors.

The existing ISZ 1800 Ambassador model has been upgraded to the Euro-I level by incorporation of the multi-point fuel injection system. Another added feature is that, the new model will have fuel effecient more powerful 82bhp engine managed by a micro-computer instead of the 72bhp earlier versions.

The release quoted its executive vice-president R Santhanam as saying that: "The Hindustan Motors R&D division at Indore has been working closely with FMS of USA to develop the appropriate technology and incorporate in all our vehicles".

In the initial phase, according to its media consultant, the company will be concentrating on upgrading the Ambassador which will later be followed for Trekker and Portermodels.

In fact, before Supreme Court passed the strictures regarding emission norms in May 1999, HM had been selling Ambassadors that had compressed natural gas as fuel.