Car from Sanand: PSA Peugeot Citroen may roll out from Gujarat
FRENCH auto giant PSA Peugeot Citroen is to invest nearly $890m (£546.97m) to set up a factory in Gujarat for its re-entry into the Indian car market, a report said today.
The financial daily Mint said the company would set up the production facility on a 121-hectare (300-acre) land at Sanand, where India’s Tata Motors builds the world’s cheapest car, the Nano.
In July, US car manufacturer Ford said it would invest $1bn (£610m) to build an assembly and engine plant in Sanand, 40 km (25 miles) from Ahmedabad.
India’s Maruti Suzuki has also been linked with a move to Sanand, as domestic and international auto makers seek to exploit the country’s burgeoning car market.
Mint quoted three unnamed Gujarat state government officials and two Peugeot officials as confirming the development. A formal announcement would be made tomorrow, the newspaper added.
Nobody was immediately available for comment.
Peugeot said in a statement in February that it intended to produce a mid-sized sedan car for the Indian market. It said the location of the production site was “under evaluation”.
Previous media reports have suggested that it was eyeing a location in Andhra Pradesh and targeting an annual capacity of 100,000 vehicles.
Peugeot, which wants to sell half of its cars outside Europe by 2015, became involved in a troubled joint venture with India’s Premier Automobiles in the 1990s. The tie-up was officially ended in 2005.
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