By the late 1970s, HM was ready to introduce a more modern car in the Indian market after having produced the ageing Ambassador for three decades.

[2] The press was upbeat about the roomy interior and plush ride, but was critical about the grossly underpowered engine and equally primitive gearbox.

[2] By the late eighties, Hindustan had tied-up with Isuzu of Japan and started manufacturing their 1.8 L 4ZB1 petrol engine and matching five-speed gearbox for installation in the Contessa.

However, after the advent of more modern cars from GM, Ford, Fiat, Tata, etcetera, the demand for the Contessa began to wane.

Maruti Suzuki had grabbed the lion's share of the market and intense competition between the new auto manufacturers brought modern fuel-efficient cars to the Indian marketplace in the late 1990s.