PSA Peugeot Citroen, the France based car maker, has decided to establish a facility at Gujarat’s Sanand with a heavy investment of Rs 4,000-crore. As many will be aware, Indian auto giant Tata Motors already has a manufacturing plant at Gujarat’s Sanand for its popular small car Nano. Peugeot has chosen Gujarat after exploring possibilities in the states like Tamil Nadu and Andhra Pradesh.
According to a senior official of the company, the firm is likely to make an official announcement in this regard by the end of this week. In a statement given to ET, the official said, "A Peugeot delegation, including Gregoire Olivier, CEO (Asian operations) and Frederic Fabre, managing director of PSA Peugeot (India project), will be coming to Ahmedabad on Thursday to sign a memorandum of understanding for the car project.”
The company is expected be adopting a top to down approach in the Indian market according to which it will first establish its product line-up in premium segment and then will be debuting in compact hatchback segment. This will be Peugeot’s second term in the Indian market as it has closed its India operations in year 1997 after suffering losses and slowing sales.
Meanwhile, country’s largest car maker Maruti Suzuki has also announced to set-up new manufacturing plant in Gujarat. The Indian unit of US based auto giant General Motors already has a manufacturing plant in Gujarat’s Halol.
