French carmaker PSA Peugeot Citron, which was exceedingly upbeat about investing in India, seems to have given up the idea for now. The company’s India investment designs were in advanced stages, but it has now surrendered its rights to a 600-acre plot at Sanand in Gujarat. The company was planning to set up a Rs 4000 crore plant at the location with an intial production capacity of 1.7 lakh units annually, meant to be taken to 3.4 lakh units at a later stage.
The reason behind putting the investment plan in abeyance is the torment back home in Europe where the company is going through its worst financial times ever. Europe’s second largest car maker after VW is putting all its resources in Europe, where the company is fighting an existential battle.
PSA Peugeot Citroen’s SSA for land allotment in Sanand, Gujarat has been scrapped, a senior official at Gujarat Industrial Development Corporation seems to have told TOI. The plan to make India the hub for ASEAN countries has been put on the backburner for now, with a possible review to happen only after 2015.
Earlier, the French carmaker was planning aggressively to launch the 508 sedan and the 207 hatchback in the Indian market. Seems like fans of the big sedan, like us, will have to wait a little more before see them zooming on our roads