PSA Peugeot Citroen plant in India will create 5000 jobs
PSA Peugeot Citroen won’t take things sitting down this time, and has initiated their first big move in the form of a new assembly plant in Gujarat in their second innings in the Indian car market. The $928 million factory at Sanand will be crucial to the company’s plans of selling more cars outside Europe. The new plant will initially be responsible for 170,000 vehicles per year. Spread over an area of 243 hectare, the new PSA Peugeot Citroen plant is expected to create about 5,000 new jobs.
The Sanand plant will have an engine and gear box manufacturing facility, and looks forward to successful production of cars in about 2 years. Marc Bocque, spokesman for PSA Peugeot Citroen had this to say. “We’re coming alone. That’s the first point. Otherwise, since then we have gained huge experience in the international market. We have developed in Eastern Europe, Russia and China. “Our experience is much different from what it was at the time. I believe this will certainly be a strong asset for our future presence (in India).”
Marc Bocque did make a reference to the company’s initial stint in India in the 1990’s and says PSA Peugeot Citroen is in a much better place today to improve their position in the Indian car market. Previously, Peugeot was in India through a joint venture with the Premier Automobiles Ltd. but the initiative was plagued with poor after sales service, and labor issues. Today, the Indian car market is more favorable for business with foreign firms. PSA Peugeot Citroen looks forward to selling about half of their cars outside Europe by 2015. Q1 of this FY saw PSA Peugeot Citroen record 44% of overall sales outside Europe.