PSA Peugeot Citroen, the France based car maker that was all set to mark its debut in the Indian auto market until a month back, is now reviewing its India plans, due to bad financial situation and decreasing sales in its domestic market. As per the recent media reports, the company has already initiated the efforts to close its Mumbai based office.
Earlier, the company had planned-up to set-up a large manufacturing unit in Gujarat, in the neighborhood of the Tata Motors’ Nano small car manufacturing plant in Sanand. The company had zeroed in a heavy investment of 4,500-crore in this project to set-up a unit with a capacity of 1,70,000 units per annum. The first India portfolio car of Peugeot was proposed to mark its debut in the Indian market by early 2014.
In a recent statement, Mr. Jonathan Goodman, director relations press, PSA Peugeot Citroen, said, "The group is currently evaluating the scheduling of the project, which may lead to some adjustments to the schedule as it currently stands."
In its home market Europe, the company has been taking cost measures due to challenging economic environment, there. The company had said a few months back that it would be decreasing its workforce by 6,000 employees in year 2012. The car sales of the company in France saw a 15.4% slump in the month of November 2011
