The plans of PSA Peugeot Citroen, the French auto maker, to put in some heavy investments in the Indian auto industry seems to have put on hold as it has been occurring huge losses on domestic turf. Reportedly, the investment plan of the car maker was in final stages, but Peugeot has now dropped out the idea of devoting a whopping amount in a 600 acre plot at Sanand, Gujarat.
Reportedly, Peugeot was planning to establish a Rs. 4000 crore manufacturing unit at the said location, which had a proposed annual production potential of 1.7 lac units. The company also decided to take the production figures to 3.4 lac units in a couple of years. Auto maker earlier expressed its approval on a State Support Agreement (SSC) with the Gujarat government in September 2011 for the establishment of the said unit. A senior executive of Gujarat Industrial Development Corporation said that the land allotment contract of PSA Peugeot Citroen in Sanand has been made void.
Peugeot is fighting hard on its home ground Europe, wherein Volkswagen Group has employed all its resources and made the situation worst for the French car maker. Peugeot Citroen is the second largest auto maker in Europe, following the dominant position of Volkswagen.
Reportedly, the French auto maker was earlier looking ahead to introduce its 207 hatchback and 508 sedan in the Indian auto market. However, the launch of these models is not certain as the company did not entertain any of the questions regarding the same.
