Peugeot to re-enter India through a joint venture with CK Birla Group

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.

Peugeot 508 spotted in India by a Team-BHP member

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.

Peugot 309, sold in India in nineties by Premier Automobiles Ltd (PAL)

Via Team-BHP

Author: Prasanth Chunduri

I am an Independent Financial Advisor advising about mutual funds. Apart from my profession I am interested in cars and bikes.

2 thoughts on “Peugeot to re-enter India through a joint venture with CK Birla Group”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s