Peugeot to re-enter Indian car market: report
Thursday 01 September 2011
French auto giant PSA Peugeot Citroen is to invest nearly $890 million to set up a factory in the western state of Gujarat for its re-entry into the Indian car market, a report said on Wednesday.
The financial daily Mint said that the company would spend an estimated 40 billion rupees on a 121-hectare (300-acre) production facility at Sanand, where India's Tata Motors builds the world's cheapest car, the Nano.
In July, US car manufacturer Ford said it would invest $1 billion to build an assembly and engine plant in Sanand, 40 kilometres (25 miles) from the Gujarat state capital, Ahmedabad.
India's Maruti Suzuki has also been linked with a move to Sanand, as domestic and international auto makers seek to exploit the country's burgeoning car market.
Mint quoted three unnamed Gujarat state government officials and two Peugeot officials as confirming the development. A formal announcement would be made on Thursday, the newspaper added.
Nobody was immediately available for comment when contacted by AFP.
Peugeot said in a statement in February that it intended to produce a mid-sized sedan car for the Indian market. It said the location of the production site was "under evaluation".
Previous media reports have suggested that it was eyeing a location in the southern state of Andhra Pradesh and targeting an annual capacity of 100,000 vehicles.
Peugeot, which wants to sell half of its cars outside Europe by 2015, became involved in a troubled joint venture with India's Premier Automobiles in the 1990s. The tie-up was officially ended in 2005.
Life & Style blogs
Men in tights: getting to the bottom of the latest trend
Snapchat removed the Best Friends list feature and 'stalkers' are upset
Night Nurse could put drivers over new drug limit
Stephen Hawking: NHS is Britain's finest public service and must be preserved from commercial interests
Baldness could soon be treated using stem cells, scientists hope
9 reasons Greece's experiment with the radical left is doomed to failure
Stephen Fry explains what he would say if he was 'confronted by God'
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Rashida Jones speaks out against male-centric porn saying 'women should have sex and feel good about it'
£15000 - £30000 per annum: Recruitment Genius: Now our rapidly expanding and A...
£15000 - £20000 per annum: Recruitment Genius: Are you passionate about great ...
£20000 - £30000 per annum: Recruitment Genius: This fast growing reinforcing s...
£18000 - £35000 per annum: Recruitment Genius: This fast growing reinforcing s...