PSA Group, the France-based carmaker and owner of automotive brands like Peugeot and Citroen, will soon re-enter the Indian market. The company is reportedly in talks with the New Delhi-based CK Birla Group for a probable manufacturing venture. An official announcement about the same is expected to be made by the end of this week.
Though detailed information hasn’t surfaced yet, media reports claim that the CK Birla Group and the PSA Group have signed a joint venture deal, which includes an assembly plant in Chennai. This manufacturing facility, with a current annual capacity of 12,000 vehicles, will likely be used to produce Peugeot vehicles locally. Further details about the signed joint venture are expected to be revealed within a week.
Interestingly, Peugeot’s Chief Executive, Carlos Tavares, had mentioned that the company is looking for partnerships to enter India, during his media interaction at the 2016 Paris Motor Show. The automaker has been keen on entering the growing Indian market from the past decade. It had even acquired land for a production facility in Gujarat, which was later shelved due to financial constraints.
If the aforementioned plans do see the light, it will mark Peugeot’s re-entry into the Indian market after its infamous first attempt. The company had earlier partnered with Premier Automobiles Limited (PAL) and had launched the 309 in India. However, labour unrest and poor dealer services resulted in huge losses for the French automaker, forcing it to pull out of the market.