Peugeot, the celebrated French carmaker made a grand entry to India by unveiling several car models at the recently concluded Delhi Auto Expo. But it appears to be making a silent retreat even before it began selling its cars in the countries. Several news reports are indicating Peugeot intends to slowdown its activities in India and might even close its office in Mumbai.
Such a U-turn might be shocking to some people but it is not unexpected to people who have observed the carmaker from close quarters. Peugeot relies heavily on its home market of Europe, more particularly France. With economic forecasts continuing to be grim for the region, car sales have slowed down tremendously adding pressure on carmakers including PSA Peugeot Citroen.
PSA had earlier announced it would be making an investment of over Rs.4,500 crores for a car plant in Sanand, Gujarat and would begin producing cars in India by 2014. However these plans appear to be on the back burner.
PSA Peugeot Citroen's media relations director hs confirmed these rumors by stating: “ The group is currently evaluating the scheduling of the project, which may lead to some adjustments to the schedule as it currently stands."
PSA Peugeot Citroen is also considering to add a partner in India to reduce its financial burden. It is also planning to reduce the amount of money it plans to invest in the country. According to its revised India plans, PSA will be looking to spend every penny very carefully so that each of them add value to the carmaker.
Such a U-turn might be shocking to some people but it is not unexpected to people who have observed the carmaker from close quarters. Peugeot relies heavily on its home market of Europe, more particularly France. With economic forecasts continuing to be grim for the region, car sales have slowed down tremendously adding pressure on carmakers including PSA Peugeot Citroen.
PSA had earlier announced it would be making an investment of over Rs.4,500 crores for a car plant in Sanand, Gujarat and would begin producing cars in India by 2014. However these plans appear to be on the back burner.
PSA Peugeot Citroen's media relations director hs confirmed these rumors by stating: “ The group is currently evaluating the scheduling of the project, which may lead to some adjustments to the schedule as it currently stands."
PSA Peugeot Citroen is also considering to add a partner in India to reduce its financial burden. It is also planning to reduce the amount of money it plans to invest in the country. According to its revised India plans, PSA will be looking to spend every penny very carefully so that each of them add value to the carmaker.
