Peugeot Citroen to finalize on the new plant by 2011

Published On Dec 28, 2010 06:27 PM By CarDekho for Peugeot 309

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PSA Peugeot Citroen, the French auto mobile manufacturer will soon declare the company's future plans for the domestic auto market. It is being speculated that the French auto giant will be soon confirming the location for its manufacturing unit in India in the beginning of the coming year.

As per the auto industry experts the French auto company has visited several sites in the two states Andhra Pradesh and Tamil Nadu and will be finalizing on the location by January third week. There are also reports that the officials from the state government have offered lucrative offers to the French auto giant which will include relaxing of few taxes and various incentives also be given to lure the auto giants for setting up the production unit.

As per the reports, Tamil Nadu government is offering various incentives to PSA Peugeot such as reducing VAT tax incentives, the nearby port facilities for imports, availability of skilled man power and low interest loans. Tamil Nadu, is already on an advantage as various auto majors have there manufacturing unit in the state. They are GM, BMW, Ford, Hyundai, Daimler-Benz and Renault-Nissan.

But Andhra Prasdesh government is not behind to, as per the government official Peugeot is looking forward at the two sites Nellore and Chittoor for its new production facility. The government here with various reduction on taxes and other offers will also make available the closest port Krishnapuram to the well known French car brand.

As per the reports the auto company is expected to invested Rs 6000 crores initially for the new manufacturing plant. The Indian auto market is tempting various auto giants globally to invest in the second fastest growing auto market globally. Peugeot Citroen is not new in the Indian auto market but is making a re-entry after 13 years. An announcement for the plant location will be made in the mid of January, 2011 when the luxury car maker finalize on the location for its facility.