Will strike a joint venture with New Delhi-based CK Birla Group.
According to French publication Les Echos, PSA Group will announce their entry into the Indian market tomorrow morning. The PSA Group will strike a joint venture with New Delhi-based CK Birla Group, which owns Hindustan Motors.
The PSA Group comprises of Peugeot, Citroen & DS, although we don't think that the latter brands will arrive on Indian shores. Further details on the operation, manufacturing plant, expected sales and model lineup could be revealed by PSA boss, Carlos Tavares tomorrow morning French time.
The manufacturing plant that will roll out Peugeots is likely to be HM's facility in Chennai that currently produces the Mitsubishi Pajero Sport in small numbers. It has a production capacity of 12,000 units per year, which could be increased with more investment by the JV. The same plant was used by Isuzu to rollout the MU-7.
This is the third time Peugeot is vying for entry into the lucrative market. The French manufacturer tied up with Premier Automobiles to assemble and sell the Peugeot 309 in India in the 90s, but they pulled out completely. PSA then announced plans to build a plant worth more than 600 million euros in 2011 in Gujarat, even breaking ground, shortly after which the Euro crisis forced the company to cancel plans and surrender the land.