French auto manufacturer Peugeot is scouting for Greenfield plant in Andhra Pradesh and Tamil Nadu. It intends to set up its manufacturing unit in India and plans to re-enter the Indian auto market. Its entry has been delayed in the country due to the global credit crunch and severe economic crisis looming large over entire Europe.
The research firm, IMIRB conducted a consumer research for the company last October. After a positive response from the automobile customers in India, it now plans to bring its hatchback model 307 and C5 sedan in India.
The company officials have met government officials in both the states about their plans and look forward to find a favorable location for setting up their new plant in India. Peugeot Vice President India, Rajesh Nellore, has confirmed about his meetings with the government officials. It does not intend to directly import its cars as Completely Built Units as they are not economically viable. Thus, it intends to set up its plants and import the cars as CKD and assemble the same locally.