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Peugeot says no plans for swift return to India but does not deny talks with Tata Motors

Peugeot India plans

The statement neither confirms nor denies that a potential partnership with Tata Motors is in works.

Responding to a recent report that said PSA Peugeot Citroen group is in talks with Tata Motors for a possible partnership involving manufacturing, technology sharing and distribution in India, the French company’s spokesperson has gone on record to say that there are no plans for a swift return to India.

Speaking to Reuters, the official said:

To date, there is no decision taken regarding a swift return to India. In 2014, Peugeot created a regions based organisation. The fact that ‘India Pacific’ is among those regions show the importance of the Indian market for Peugeot.

He however didn’t say anything that confirms or denies a potential partnership with Tata Motors. According to Reuters, a spokesperson of the Indian company stated that there is no specific announcement to make regarding this mater as on now.

Peugeot-Tata Motors deal

While Peugeot acknowledges the importance of the Indian market for its long term goal, it rules out a swift return.

If Peugeot-Tata Motors deal becomes a reality, the French automaker could make use of its Indian partner’s under utilized Sanad manufacturing facility to build its India-spec models including the 208 hatchback, 308 sedan and 2008 crossover. The arrangement could also involve using Tata Motors’ well established distribution and sales network to retail Peugeot products. In exchange, Tata Motors could gain access to Peugeot’s high-tech engines and platforms for future models.

The recent statement from Peugeot is not any different form the one which was released earlier this year when rumors about imminent Indian re-entry started circulating. It can be inferred that, while French automaker is exploring various strategies to approach the Indian market, nothing has been finalized yet and it is not in a hurry to stage a comeback.

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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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