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PSA Group returns to India

29 Janvier 2017 - motor1

Peugeot 301

The French company announced a major $107-million investment in the country.

PSA Group, most likely through its Peugeot brand, is returning to the Indian automotive market. The French company has been absent from the country since the late 1990s and, following an unsuccessful returning plan from 2011, it is going back to India with a major $107-million investment.

As part of the "Push to Pass" growth plan, PSA Group will produce and sell vehicles and components thanks to an agreement with the New Delhi-based CK Birla Group conglomerate, divided into two joint-venture deals and wearing the "Be Indian in India" slogan. The French manufacturer will base its vehicle assembly and powertrains manufacturing sites in the state of Tamil Nadu, where initially about 100,000 vehicles will be produced annually.

"Benefitting from the strong support of our Indian partner, the CK Birla Group, and a shared vision, this project is consistent with the strong execution of our 'Push to Pass' strategic plan and represents a major step in PSA Group's worldwide profitable growth in key automotive markets," Carlos Tavares, Chairman of the Managing Board of PSA Group, commented. CK Birla, Chairman of the CK Birla Group, added that he is "confident that the coming together of the latest state-of-the-art technology from the PSA Group and the engineering and manufacturing excellence of the CK Birla Group will benefit the automotive sector in India."

PSA wants to introduce "one new car, per region, per brand and per year," which potentially means the company will launch a dedicated, affordable India-made model by the end of the decade. Another option is the Peugeot 301/Citroen C-Elysee duo, which is designed for the emerging markets and will perfectly suit the needs of the local customers.

In the next five years, the manufacturer will release no less than 26 passenger cars set to "transform the company in order to unleash its full potential." The plan will focus on connected and autonomous cars, turning the auto giant into "a great global carmaker with cutting edge efficiency and the preferred mobility provider worldwide for lifetime customer relationship."

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