Peugeot to set up India plant in Gujarat with Rs 4000 crore investment

PSA Peugeot Citroen are done hunting for a place to set up their plant in India. The French carmaker which has been extensively testing its 508 and 207 cars in India for some time will set up a plant in Sanand, Gujarat.

The company has zeroed in onto to Gujarat after exploring possibilities in other auto hubs including Tamil Nadu and Andhra Pradesh. A MoU will soon be signed between PSA Peugeot Citroen and Gujarat government for the car plant. Peugeot’s Asia operations CEO, Gregoire Olivieres and India MD Frederic Fabre will sign the MoU in Ahmedabad on Thursaday.

The upcoming plant will be in Ford India and Tata Motors’ neighborhood in Sanand. The company plans to invest close to 4000crore rupees in its new plant in a phased manner. Gujarat has emerged as the favoured destination for auto makers in India of late. Its central location, availability of ports and good connectivity, along with Gujarat government’s proactive approach is trumping other auto hubs for new investments.

This would be Peugeot’s  second innings in India. The company will launch a D-segment sedan and big hatch to start with. To read more about the two cars, please follow this link.

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