PSA Peugeot Citroen, Europe's second-largest car producer, will soon take a final call on its India plans, as senior teams from the company hold talks with state governments for a manufacturing facility.
Europe's second largest car-maker PSA Peugeot Citroen on Wednesday announced plans to re-enter the Indian market with a mid-sized sedan, ten years after it made an exit from the country.
The company plans to establish project with an initial capacity of 300,000 units per year.
Layoffs are turning out to be the flavour of the week, with European auto makers Peugeot, Citroen and Rolls Royce, British pharma giant AstraZeneca and American defence equipment manufacturer Boeing all set to slash nearly 7,000 jobs.
Following the re-entry of French car maker PSA Peugeot Citroen, the erstwhile sleepy town -- already home to Tata Motors' manufacturing plant for small car Nano -- finds itself along the country's prominent auto hubs like Pune in Maharashtra and Sriperumbudur in Tamil Nadu.
Gujarat has caught the fancy of a large number of corporate heavyweights.
While the carmaker still has another 300-odd acres to set up the proposed plant, state government officials said the government might sell the remaining land, too, if the demand came up in future.
The agreement was signed by Gujarat principal secretary Maheswar Sahu and PSA Peugeot vice-president (emerging market and India) Fredic Fabre in the presence of Gujarat Chief Minister Narendra Modi in Ahmedabad.
A state government official said Peugeot officials surveyed two sites -one near Sri City in Chittoor district and another near Sitarampet in Ranga Reddy district.
A senior delegation from PSA Peugeot Citroen, France's leading car producer, is expected to meet the Tamil Nadu government next week.
Company will take a call after Assembly polls.
Government officials said the company was likely to invest about Rs 2,000 crore during the first phase of the project. In all, it could be Rs 7,000-10,000 crore.
Philippe Varin, chief executive officer of steel maker Corus, will take over as the chairman of the managing board of French car maker PSA Peugeot Citroen from June this year.
Though this is a fraction of the Euro 31 billion worth of auto parts the group buys in a year, there are indications that more is in the pipeline.
PSA Peugeot Citroen has no plans to re-enter India's car market any time soon
It manufactures cars ranging from entry-level hatchbacks to sedans to sport utility vehicles to vans to pick-up trucks. It also has a range of electric and hybrid vehicles
Three way split of AIADMK has slowed decision-making, prompting industry to look outside the state, says T E Narasimhan.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances