Peugeot to Re-Enter Indian Market

Tuesday 15 June 2010, 00:00 AM by Payal Pathak

French carmaker Peugeot may be entering the Indian market but when it will finally set up its operations or manufacturing unit is still not confirmed. Industry sources report that Peugeot officials are scouting locations in Tamil Nadu to set up a manufacturing unit in the state. The state government officials have already confirmed that they are in talks with company officials and everything is still in a very nascent stage.

So far Peugeot is still contemplating whether it will set up a complete manufacturing unit or a simple assembly plant to import kits and assemble them locally to save duty. There is no official comment from Peugeot regarding the same.

The European market is facing tough times and sales are on a constant decline. Peugeot’s market in Europe is eroding and the company is actively seeking prospects in new markets. Chennai is already an auto manufacturing hub for Hyundai, Renault-Nissan and Ford. If Peugeot sets up its operations in Tamil Nadu it will be the fourth global automaker and second French automaker to enter the state.

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