PSA Peugeot-Citroen To Enter India With CK Birla Group

The official announcement is expected within this week

India is one market that no automobile manufacturer can afford to ignore. Not only is it one of the most exciting to be a part of, but also one of the fastest growing in the world. Experts say that in a few years from now, the Indian automotive industry is expected to overtake Japan and become the third largest automotive market in the world. 

According to a report by a french publication Les Echos, the French PSA Group has formed an alliance with the Indian family conglomerate CK Birla Group to restart its operations in the Indian automotive market. The publication also shared that an official announcement will be made by the French automobile group within this week.

While we wait for an official confirmation, the French publication claims that the new joint venture will integrate a manufacturing plant owned by Birla family of Hindustan Motors - the brand famously known for the now defunct Ambassador car. With the arrival of PSA Group, the current production capacity per annum could be increased tenfold.

If all goes well for PSA Group, it will be an ideal development for the French automobile group to forget about its first attempt to establish Indian operations, around twenty years ago. Back in the 1990s, PSA group tied up with the local Premier Automobiles, which we all remember as the creator of the Padmani car, to assemble and sell the Peugeot 309. With a lack of customers, Peugeot faced tough times to survive in a market that was in its initial phase of gaining momentum. The Group was in talks with the state government of Gujarat back then to establish a manufacturing plant with a production capacity of 1,70,000. PSA Group also had plans to launch a couple of Peugeot products soon after, but all was left in vain when the company was struck by financial crises.