Though it surveyed its possibilities in 2011, for its re-entry into the Indian market, it had to hold its plans due to financial crisis.
Peugeot eyes an India launch and so the French carmaker is on the hunt for prospective partners. Though it surveyed its possibilities in 2011, for its re-entry into the Indian market, it had to hold its plans due to financial crisis.
It even set up its office in Mumbai and earmarked land for setting up a manufacturing facility in Gujarat. So, after five long years, Peugeot is eyeing a re-entry into India.
Confirming its re-entry, Carlos Tavares, Chief Executive, Peugeot, said, “Yes, we are seriously looking at coming back. In fact, I can tell you we will come back to India in the next two or three years. Right now it is only a matter of finding the right partner.”
The investment is quite huge as well, which is why the Peugeot is looking for a partner in India. It will spend up to Rs. 4,000 crores ($600 million) to set up its plant in the country.
Once if Peugeot gets an investor, it will go on to create unique products for the Indian market for which a local alliance would augur well for the French carmaker. This will help the Peugeot locally make and price their products better with better economies of scale.
Although put on hold for now, Peugeot has reportedly held talks with Tata Motors. If the alliance comes through, Peugeot will make use of Tata Motors’s X4 platform. Many models will share this X4 underpinning in the future.
Peugeot’s last stint in India was with the heavily unsuccessful Peugeot 309 in the year 1997. With the talks with Tata Motors suspended, it is turning out to be quite a challenge for the Peugeot to find a partner and make a re-entry into the projected world’s third largest automobile market, by 2020.
