France based leading car maker PSA Peugeot Citroen is gearing-up to announce its plans for the Indian market. The company is expected to announce the selected location for its upcoming manufacturing plant in the India by January 2011.
As per the industry sources, the company has reviewed several sites in both Tamil Nadu and Andhra Pradesh, and will make a final decision on the preferred location in third week of next month. Meanwhile, the governments of the both of these states have offered a range of tax sops and incentives to the car maker, in order to convince them to establish this new plant in their state.
The Tamil Nadu government has offered a series of incentives to PSA Peugeot that comprise of tax incentives in VAT, port facilities, guaranteed human resources and easy interest rates on loans. Companies like BMW, GM, Ford, Hyundai, Daimler-Benz and Renault-Nissan, already have their manufacturing facilities in the state of Tamil Nadu.
On the other hand, the Andhra Pradesh government has identified two sites for the Peugeot’s new plant in Chittoor and Nellore, with assured access from the nearest port Krishnapuram.
The French car maker PSA Peugeot Citroen is coming back to India after an exile of over 13 years. The initial investment for erecting this new plant would be about Rs 6,000 crores.
The iconic Peugeot 307
