Bookings for the vehicle named Ambassador Encore begun on Monday, the company said in a statement.

The buyers in replacement taxi segment will be able to avail of a handsome reduction in the announced price, it added.

West Bengal government had recently issued 2,000 permits for the no-refusal taxi segment. Another set of 2,000 similar permits are expected to be released in November. The company expects a good share of sales from these lots.

West Bengal government has brought a concept where taxis cannot refuse passengers. The new taxis are sleek and come with additional passenger comforts. Besides, no refusal is printed on these cabs.

"It is a game-changing offer from HM which has always accorded highest priority to customers’ needs and purchasing power," Hindustan Motors Managing Director & CEO, Uttam Bose said in the statement.

The company made significant investment in terms of money and man hours to upgrade its BS III 1.5-litre diesel engine to BS IV standards and OBD 2 level. Yet, it has chosen not to pass on the expenditure to customers. Through value engineering and cost-efficient manufacturing, HM is able to offer Ambassador Encore at this amazingly low price without any compromise on quality, he added.

Hindustan Motors' National Sales Head Chandan Bose formally announced the price at a meeting of office-bearers of the state’s different taxi associations on Saturday night. Ambassador Encore has once again opened for Hindustan Motors 17 metropolitan cities where sale of BS III cars had been banned from April 2010.

The company is ramping up production at its Uttarpara plant in Hooghly to meet the surging demand for the Encore.