Hindustan Motors (HM), a C K Birla Group firm, will launch a new model of its iconic car Ambassador, powered by a 1.5 litre BS IV-compliant diesel engine.

The crisis-ridden auto manufacturer has displayed the new model with BS IV diesel engine to Kolkata’s taxi associations at its plant, a company statement said today.

Some HM dealers also drove the new model of its car on the test track to get a feeling of the forthcoming model, the auto maker said.

According to the company, it will soon introduce the BS IV complaint model with a new name in the market

HM has plans to introduce the new BS IV Ambassador in 17 metropolitan cities where sale of BS III cars had been banned from April 2010.