In April 2016, French carmaker Peugeot, which is now PSA Peugeot Citroen (Groupe PSA), had confirmed its plans to re-enter India by 2018 as part of the 'Push to Pass' plan, a growth plan strategy of the company for 2016 to 2021. The company was in search of an Indian partner and it now looks like it has got one.
French website Les Echos reports that Groupe PSA has forged an alliance with New Delhi-based CK Birla Group. The details of the operation are expected to be revealed by Carlos Tavares, the boss of the French manufacturer, at a press conference soon.
The tie-up will make use of the Hindustan Motors plant in Chennai as its production unit, the report adds. Hindustan Motors is owned by the Birla family and is one of the oldest carmakers in India with its iconic sedan Ambassador. The plant currently produces some of the Mitsubishi vehicles and has a capacity of manufacturing 12,000 vehicles per year. The first car launch of Peugeot in India is expected before 2020.
The French carmaker was one of the early birds in India after the country's economy opened up for foreign investments in the early 1990s. The company had partnered with Premier Automobiles in 1994 and offered the 309 sedan. However, the partnership ran into trouble with labour issues, and Peugeot wound up its India operations in 1997.
After a long hiatus, the second entry was confirmed six years ago, and the company showcased 3008 hybrid, RCZ, 3008 crossover and 908 LeMans car at the Auto Expo 2012. PSA was planning to build a plant worth more than 600 million euros in Gujarat. However, financial uncertainties prompted the company to shelve the plan.
Source: Les Echos