Peugeot is planning to launch its small and compact car in India and China by the year 2011. The new 5-seater car is expected to be extremely spacious and cater to the growing small car demands in the country. The car is expected to make its debut in next two years which will mark the entry of the company in the small car segment in India.

Peugeot will manufacture its small car in Turkey or Poland. The car will also make its debut in other countries such as Eastern Europe, Central Europe, Russia, Africa, Turkey and South America.

India is one of the biggest auto markets for small car segment. Small car sales in India amount to nearly two-third of the total car sales in the country. Nearly every auto manufacturer plans to introduce its small car in India which would enable to company to expand its market share. Toyota, Ford, Renault-Nissan, General Motors, etc. have already lined up the launches of their small cars in the country. This segment is currently dominated by Maruti Suzuki which occupies more than 50 percent market share. It is the largest manufacturer and exporter of small cars from India. Hyundai Motors India Limited is the second largest car manufacturer and exporter from India that has its plant near Chennai. It recently launched its most popular model Hyundai i10 and plans to introduce its new model, Hyundai i20, early next year.