The reports stated that the two auto majors would be sharing technology, joint investments and production facilities in France and in India. The newspaper also reported that executives from Mahindra had visited Peugeot headquarters in France and talks were currently underway.
This alliance with Mahindra would have brought back Peugeot to India for a third time, but Peugeot has issued a statement proving these reports false and state that they are not in talks with anyone despite the fact that Indian market is important for the company.
Peugeot is facing falling sales and dwindling profits and would hence like to concentrate on reviving the brand in Europe before venturing to Indian shores.
Peugeot had entered India earlier through a liaison with Premier Automobiles. This association was only for a limited period before the French auto maker pulled out of India in 1997. It was again in 2011 that Peugeot tried to enter India with participation in the 2012 Auto Expo and a proposal to set up a production plant in Sanand, Gujarat at an investment of INR 4,000 cr. This plan again did not see the light of day as the company preferred to concentrate on European markets where they are currently in the process of introducing new products.