Peugeot Citroen yet to finalize manufacturing location

Peugeot Citroen, the French auto giant, is entering the Indian auto industry after a sabbatical of 13 years and is looking forward for a manufacturing unit but is still working towards finding a possible location. As per the industry reports, Peugeot Citroen, will declare the new production plant soon probably by mid of January, 2011. The auto giant's experts visited lots of sites in Andhra Pradesh and Tamil Nadu and will finalize soon on one of the best suited site for its plant. As per the sources, the French car maker will invest 800 and 1 billion euro (RS 5,900 crore). Also both the states are offering lucrative incentives to Peugeot Citroen.

As per the sources, Tamil Nadu State government has offered a “detailed package” which is a part of the government's ultra mega policy for the car industry. The policy holds in itself the incentives such as low and easy interest loans, tax benefits such as VAT discount, availability of human resource and for export purposes access to ports. As per the government official, the French auto maker held talks with the government from sometime now. Peugeot had three big meetings in the last one and a half month, with the states and also visited various sites. The company's officials met Deputy Chief Minister and the sites were inspected by the company's technical experts also.

Andhra Pradesh is also enticing the French auto giants. According to the the sources, Peugeot executives visited the sites in the state. If the government officials are to be believed, Nellore and Chittoor are the two sites, the auto giants are keen on and also the Krishnapatnam has been hired for exports. As per the statements, it may finalize the site by January mid, 2011. The French car manufacturer requires a land of 800-1000 acres and is expecting an investment of Rs 6,000 crore.

When quizzed about the progress, Peugeot Citroen stated that the company is yet to finalize on the site. Tamil Nadu recently developed into an auto mobile hub and big car makers such as Hyundai, Ford, BMW, Daimler-Benz and Renault-Nissan have invested in the market. As per the Tamil Nadu government executive, the relaxation on VAT (12.5 per cent) is a big margin for the car makers.

Read More on : Peugeot 309 review