PSA finding opportunities in India

PSA Peugeot Citroen, the Europe's second largest car producer in sales, prolongs to test the hoses as per an additional sign of its on-again, off-again loom to the Indian market.To the Indian market, PSA is not new arrival. Moreover, Peugeot unit was one of the foremost competitors to enter into India through collaboration with Premier Automobiles Ltd, to produce the Peugeot 309. The production got delayed due to the labor agitations at Premier's Kalyan plant in suburban Mumbai. Further, in the year 2001, the Peugeot sold only a few thousand cars.

To work around the investment prospects in Andhra Pradesh, senior PSA executives Frederic Saint-Geours, board member and adviser to chief executive officer, and Rajesh Nellore, managing director for India operations convened the Andhra government.

The principal industries secretary of Andhra Pradesh Mr. B. Som Bob is yet considering the discussion as . Adding, PSA is also investigating about the investment prospects in remaining states too, he added.

Currently, car markets are dwindling in the West and have impelled car producers like PSA to focus at Indian Sub-continent with interest. Even though they suffered losses, the Indian units of Ford Motor Co., General Motors Corp. and Toyota Motor Corp. are inclined to invest in India. Adding, Ford has decided to increase the capacity by investing an amount of $500 million (Rs.2,435 crore) and a new facility. In the month of September, General Motors instated its 140,000-unit Talegaon factory on the suburbs of Pune in Maharashtra.

Previously Nellore operated at components firm Johnson and organized united PSA in the previous July to lead functions in India and opened an India office in the month of October. Further, the company has decided to form India as a center for source. The company is energetically sourcing in India with the help of the partners Magna Steyr. But the company is lingering to pick up more direct loom, said Nellore. Adding, he refused to remark in addition.

Paul Blokland, the director of Segment Y, an automotive intelligence firm said that the PSA has seeked diesel technologies that could provide it a margin in the Indian market. More so, 50% of the cars that were sold in the Europe work on diesel engines. PSA underwent customer clinics in New Delhi and Mumbai in the month of November to dig up feedback on its cars and discovered there exists the Peugeot 207, 308 and 408, and Citroen C5 and C6.