Peugeot plans return to India, mulls partnership with GM

French automakers PSA Peugeot Citroen are planning a return to India. They are the only global automaker, that do not have any presence in the country which is amongst the fastest growing auto market in the world.

Peugeot plans return to IndiaThe company had marked their entry earlier in 1990s with Premier Group, which ended in 2001. In 2011 they planned on coming in solo with an investment of INR 4000 crores, but dire economic conditions and failure made them beat a hasty retreat and nip plans in the bud to set up base in Sanand, Gujarat (image above).

This time Peugeot Citroen Group is sure of making their Indian venture a success. The company is taking up an in-depth study into their Indian operations with their team based in Pune, weighing options and coming up with a fool proof success plan. Peugeot Citroen could enter into a contract with General Motors so as to reduce initial investment.

General Motors has two plants in Talegaon, Maharashtra and Halol, Gujarat where they have a combined capacity of 1.7 lakh units per annum. Underutilized to the extent of 75%, a joint contract with Peugeot Citroen will be beneficial to both parties. Peugeot is also contemplating a partnership with DongFeng Motor Corporation with plants in Maharashtra or Tamil Nadu.

Peugeot Citroen could mark their entry into the Indian car market with a small and compact car and have already appointed an Operational Director, India Pacific zone confirming that they are taking their Indian venture seriously.

(PS – Peugeot Citroen test vehicles have already been spotted in India)

via Financial Express