Peugeot aborts Operation India, surrenders land in Gujarat

Nithyanandh

Nithyanandh K, As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!

Peugeot 2008 Crossover Concept rear profilePeugeot is the latest of the giant automobile brands that had big plans to enter India. The French bigwig had in mind a hefty 4,000 crore investment plan for a factory to tap into the growing Indian market.

However, the Euro crisis had thrown a big spanner in the works and Peugeot surrendered the right to the land in Sanand, Gujarat, which was acquired for the factory.

This decision had come in the light of worst ever financial crisis Peugeot is experiencing back at home.

The Paris based, heritage-rich carmaker, is routing all its resources towards rescuing its struggling European operations.

The PSA Peugeot Citroen group had signed a State Support Agreement (SSA) with the Gujarat government in September last year for setting up a green field plant with an annual capacity of 3.4 lakh units, but defaulted on the periodic payment to the Gujarat government as they decided to abort the Indian operations.

Mr. M Sahu, Managing Director of Gujarat Industrial Development Corporation (GIDC) who is aware of the situation stated that, “All their plans for India are on hold as of now.”

Peugeot had plans to make India their export base for RHD markets of ASEAN countries and Australia. The group originally planned to assemble its flagship Peugeot 508 sedan followed by B Segment hatchbacks, but sources close to the development say that India is off the radar for another three years.

[Source: Economictimes.Indiatimes.com]

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Peugeot 508 News & Updates

2018 Peugeot 508 front three quarters rendering

Next-gen 2018 Peugeot 508 – Rendering

2018 Peugeot 508 spy shot

First 2018 Peugeot 508 spy shots surface from China

2017 Peugeot 508 rendering

Second generation 2017 Peugeot 508 – Rendering

Peugeot RCZ at the Philippines Motor Show 2014

Live – Peugeot at the Philippines International Motor Show 2014

2015 Peugeot 508 sedan at the 2014 Moscow Motor Show (2)

Moscow Live – 2015 Peugeot 508 facelift, 208 GTi, 308 R and RCZ

2015 Toyota Camry facelift for international markets teaser

[Updated] IAB Report – Cars attending the Moscow Motor Show 2014