Making its re-entry in the Indian market, French automobile giant PSA Peugeot Citroen (PPC) entered into a memorandum of understanding (MoU) with the Gujarat administration with the aim to establish a unified manufacturing plant with a total investment of Rs 4,000 crore at Sanand.
Gujarat Principal Secretary Maheswar Sahu and PSA Peugeot Vice-President (Emerging Market and India) Fredic Fabre inked the MoU in the company of Chief Minister Narendra Modi.
As per an official report, “The fully integrated facility of PPC, the first one in India, will be set up on 584 acres with an investment of Rs 4,000 crore. It will have an initial capacity of 1,65,000 units annually and is expected to be commissioned by end of 2013.”
PPC Board Chairman Philippe Varin said that the state of Gujarat provides a practical biz atmosphere, admirable infrastructure and is purely well placed to fulfill the requirements of passenger car markets crosswise the country.
“We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020,” Mr. Varin added.
The French car manufacturer was present in India via a JV with Premier Automobiles Ltd (PAL) nearly a decade ago.
The joint venture was later wound up and the company, PAL Peugeot Ltd (PPL), stopped operations.
With the novel contract, Peugeot will be a neighbor of Ford and Tata’s Nano facilities in Sanand, a forthcoming auto center some 40 kms from here.
The firm had been in search of land for its India foray for the last few months in the state of Tamil Nadu, Andhra Pradesh and Gujarat.