Peugeot plans to re-enter India

[Plex]

NEW DELHI: PSA Peugeot Citroen is charting a quiet re-entry into India. The e34.6-billion French auto major is interested in both sourcing
components as well as setting up a production base in India, said a company official.

Peugeot Citroen is among the few global automobile companies that does not have a full-scale presence in India yet.

�We are looking at an industrial strategy and exploring both the JV and 100% subsidiary options,� said Rajesh Nellore, company�s V-P in charge of India. However, because of the current slowdown, the automaker is yet to take a final decision on its India strategy. �These are difficult times right now and we have not made any final decision,� Mr Nellore said.

Peugeot is looking to use the sourcing route to acquaint itself with the Indian market first. The company established a local office in Chennai a couple of months ago and kicked off sourcing components through Magna Steyr. �We have just started sourcing components and are now doing it on our own instead of through Magna,� Mr Nellore said.

Peugeot Citroen teams have met officials from the Society of Indian Automobile Manufacturers, the apex body for the auto industry in India, for inputs on the emission roadmap, road-worthiness rules and policy structure. According to a partner in a Delhi-based MNC consultancy firm, Peugeot�s sister brand Citroen is also interested in an India entry thanks to the line-up of small cars in its stable.

Economictimes