Peugeot Plans Re- Entry To India

By Religare

Published: Monday, July 12, 2010, 17:13 [IST]

The French car company, who has been in exile all these ten years, is now back into the country. To consolidate its presence this time it is looking for a partnership with Hindustan Motors.

Both are already in fine tuning, as HM is forwarding engine and other components to PSA Peugeot. To make its reentry into India Peugeot is likely to invest Rs700 million euros(Rs 4200 crore) on phases and the initial launch of cars will be in 2014 (nearly 1 lakh cars).

In all probable, Andhra Pradesh is set to facilitate the company with tax reliefs and incentives. HM is ever busy with engine and component supply as it has the demand for 7 percent daily order against which it is capable of delivering 4 percent. GM had a good stint with HM for getting Avtec.

PSA Peugeot technical team is in India exploring the possibilities to install its facility. This time, PSA is very cautious getting lessons from its earlier entry some ten years ago, when its venture could not yield the desired result. The pact was with Premier Auto Limited then but the Peugeot brand cars failed to impress market and this time it may be the brand of Citroen, it is
assumed.

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Article Published On: Monday, July 12, 2010, 17:02 [IST]

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