French car maker Peugeot has bought the Ambassador brand name from Hindustan Motors for $12m (£9.6m).
No Ambassadors have been built since 2014, following a rapid decline in sales.
The car, which first appeared in the 1960s, was based on the British Morris Oxford. It was popular among government officials and was seen as a status symbol for decades.
Because it was built in such large numbers and for so long, the Ambassador remains a common sight on Indian streets.
Before the Indian car market was liberalised in the 1990s, the Ambassador was the only mass-produced vehicle in the country. However, today it is viewed by many as a relic of yesteryear.
The car boasted effective suspension – important on bumpy Indian roads – as well as a spacious interior. It was also one of the first cars in India to offer air-conditioning and a diesel powertrain. However, its handbrake was far from reliable, prompting millions of drivers to learn how to do hill starts by balancing brake and accelerator.
The brakes were exceedingly soft and the steering lock was poor.
If Peugeot does revive the Ambassador brand, it will need to give the design a fundamental re-think, especially considering competition from much more advanced, comfortable cars.
If brought back from the dead, the Ambassador will join a number of other previously successful marques. In 2013, Nissan revived the Datsun brand for its export cars, while Volkswagen brought the Bugatti car brand back to life after years of dormancy.
Other notable revived brands include MINI, Maybach, MG and the USA's Lincoln.