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    Peugeot looking to invest a whopping Rs. 7,000 crore in Tamil Nadu facility

    by V3Cars Team on Wednesday, Oct 04 2017

    PSA Peugeot is all braced up to start its Indian operations soon in association with an Indian industrial group. Peugeot is now expected to sign a memorandum of understanding with the state government of Tamil Nadu which will see an investment of a whopping Rs. 7,000 crore towards the development of a car plant in the state.

    PSA Peugeot is all braced up to start its Indian operations soon in association with an Indian industrial group. Peugeot is now expected to sign a memorandum of understanding with the state government of Tamil Nadu which will see an investment of a whopping Rs. 7,000 crore towards the development of a car plant in the state.

     

    The French car maker is expected to start its Indian operations with a slew of models and its expected investment in Tamil Nadu will confirm its arrival in our market. On the other hand, Tamil Nadu is interested in Peugeot’s huge investment, as it had recently lost the opportunity of investment from Kia, Hyundai’s system firm. Kia chose Andhra Pradesh to invest $1.1 billion early this year for its plant, even though Hyundai has all its manufacturing facilities in Tamil Nadu. 

     

    While speaking on the development, Tamil Nadu Guidance Bureau said that the state government would sign a MoU with an European auto major which would set up a research & development centre as well as a manufacturing plant in Tamil Nadu. While the state declined to disclose the name of the automaker. However, an official revealed that it is actually PSA Group, the French car maker. The official has also disclosed that the company is planning to investment around Rs. 7,000 crore in the state. 

     

    When the PSA Group was contacted for confirmation, the group did not respond. Earlier this year, the French automaker acquired the iconic Indian auto brand, Ambassador. Peugeot has already formed a partnership with the Indian CK Birla Group to invest around Rs. 700 crore towards manufacturing vehicles and selling cars in the domestic car market of India.

     

    As per the reports, PSA Peugeot Citroen which renamed itself as Groupe PSA in April, 2016 is preparing itself to introduce as many as 17 vehicle models in the Indian market by the year 2021. This will be the French car maker’s second innings in the car market of India. Peugeot will be coming back to our shores with an initial product portfolio comprising with a compact SUV Peugeot 3008. The second generation of the Peugeot 3008 is also set to be launched in the car market of China, which will the only market outside Europe to receive this SUV.

    The PSA Group that owns the Peugeot, Citroen and DS car brands closed its operation in India back in the late 1990s, ending a joint venture with Premier Automobiles, which launched only one car model. The French auto major attempted a re-entry in the Indian market back in 2011 with land bought in Gujarat to set up a plant, but the attempt was not fruitful due to Europe’s debt issues and its companies becoming cautious about new investments. 

    This time around, Peugeot’s entry into the car market of India is expected to be successful as the Indian car market has matured a lot and the modern car buyers are leaning more towards global cars and luxury cars. However, all depends of the quality and pricing of the Peugeot cars in India

     

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    V3Cars Team is the India’s most reliable source of all new launched & upcoming car news, updates & reviews.

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