Peugeot closing down Mumbai office,reconsiders India plans
Modified On Feb 03, 2012 01:32 PM By Vidyadhar
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Europe’s second largest car maker isn’t having a good time these days. Due to dipping sales in its home market, PSA Peugeot Citroen is reviewing its plans for India. The French auto giant, who had finalized to build its manufacturing plant at Sanand in Gujarat and had decided to invest about Rs. 4500 crore and manufacture 170,000 vehicles every year has now decided to close its office located in Mumbai. As per the proposed plant, amongst the cars, the first one that Peugeot would roll out will be the mid-sized sedan in 2014.
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According to the director of relations of PSA Peugeot Citroen, Mr. Jonathan Goodman, the company is currently weighing up the development of the project that may lead to certain fine-tuning to the schedule of the current status. According to our reliable sources, the firm is currently busy re-engineering the entire project so that whatever money is invested into the projects brings on a certain value.
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In the month of February 2011, PSA Peugeot Citroen announced to re-enter the Indian car marker after a decade. But, after looking upon numerous potential partners, the firm decided to enter the market all by itself. Apparently, now the carmaker has once again considered getting into the partnership with either Siddharth Lal, who is the proud owner of Eicher Motors or with Pawan K Ruia, the owner of Dunlop India.
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Peugeot, revising its India plans, could certainly prove a bit of a setback to Narendra Modi’s ambition of turning Sanand, India’s fresh and new auto manufacturing hub. PSA Peugeot Citroen was the third carmaker, after Tata Motors and Ford, to set up its manufacturing plant in Sanand, Gujarat. For the company, the Indian project was a main part of a larger game plan altogether and was aiming to get about a partial amount of its sales from outside Europe by the year of 2015. But, it appears that the company isn’t going to set up its own plant in India anytime soon.
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