In a bid to give its expansion operations a catapult, PSA Peugeot Citroen, the French automaker has announced its comeback in India with the aim of manufacturing cars in the country in partnership with General Motors, its recent global associate.
Peugeot Citroen and General Motors are both heading towards chalking out the feasibility and planning greater and effective utilization of the General Motors plants in India for the fierce entry of the French auto manufacturer.
Mr. Gregoire Olivier, Head of Asian operations, Peugeot Citroen said at the ongoing Beijing Motor Show 2012, "We're not going to move forward by building our own factory as we'd planned to."
He further added, "We now have GM as a global partner, and GM has factories in India, so we're obviously reviewing our plans from the top. There are a lot of other ways to enter India now that they don't require us to put 600 million Euros on the table."
Peugeot marked its exit from Indian auto market in the year 1997 owing to the partnership failure with Premier Automobile Ltd. and since then had been looking to make a comeback to one of fastest growing auto sectors in Asia. However, it is anticipated that the company will make an entry with the introduction small and compact car for its Indian portfolio but as of now, detailed information about its entry is not disclosed.
Mr. Dan Akerson, GM Chief Executive commented that the alliance with Peugeot Citroen is a "Euro-centric play" mentioning further that many partnership opportunities are available in Asia and South America.
