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French auto major Peugeot is set to re-enter the Indian market after exiting it more than a decade ago. Peugeot-Citroen which exited India in the late 1990s, is currently prospecting locations around the country, including Tamil Nadu, to set up a manufacturing plant.
Peugeot has been lured to the thriving Indian passenger car market which is expected to grow from the present two million cars a year to six million in a decade. This is an irresistible temptation at a time when European market share is eroding.
State government officials confirmed the development to TOI. Rajeev Ranjan, principal secretary, industries department, government of Tamil Nadu said, "We are in discussions with the company. The plant would be located near Chennai."
Sources added that Peugeot was exploring various options — from assembling imported units to setting up a full fledged factory — on the outskirts of the city.
Details of size of investment, planned capacity or location of the plant is not available. Peugeot could not be reached for a comment either.
"Everything is still at the discussion stage at this moment," Ranjan added.
