The year was 1994 and Peugeot was the first automotive MNC to step on the Indian soil. Europe’s 4th largest automotive major Peugeot of France joined hands with the Premier Automotive Ltd (PAL). This union of these two opposites posed as a threat to the other companies then. With Peugeot launching their highly ambitious 309 in 1995 were sure to send shivers in the market. By November 1998 due to internal disputes and disagreements on policies along with the labour unrests the Kalyan plant came to a stand still and Peugeot lost in total around 3 billion. This lead to Peugeot leaving the country and getting back to their European markets.
Now after a decade Peugeot which is PSA Peugeot Citroen is all gearing up for the Indian mainland. The C.E.O of the company Mr Philippe Varin said that Peugeot is going through an active phase and by January or February they will have something to say. When talking about the exit an decade back Mr Varin says that’s history.
Peugeot Citroen plans to invest Rs 600 Crore to set up a plant either at Tamil Nadu or Andhra Pradesh. In 2007 they were trying to start a plant in Andhra Pradesh but due to some issues did not happen.
Having a history of failing in India it takes courage to stand up and Peugeot is doing that. It will be very interesting to see the reaction of other car giants response to Peugeot Citroen which will make a stronger comeback very soon.