PSA/Peugeot-Citroen, which has just established headquarters in Mumbai, said it plans to expand into India with industrial and commercial operations through its Peugeot brand, initially producing a mid-sized sedan. PSA CEO Philippe Varin recently said in a news conference that several possible production sites are being considered.
He said that more details (such as the amount of the investment) will be provided as soon as the plan is more clearly established. In December 2010, PSA said that the plans to build a factory in India are in an “active phase.”
Varin did not give a precise timetable for the India project but said he hoped the company would make a "significant step forward" in 2011. Peugeot, in 2009, suspended a project to build a plant near Hyderabad, the capital of Andhra Pradesh state, pending the outcome of negotiations for a share swap with Mitsubishi Motors Corp.
Gregoire Olivier, PSA Asia’s executive vice-president, said that India is a key market and this new implantation reflects the company’s goal to become a global player.
Olivier also said that just like what the company did in China, Indian customers will receive vehicles that are “adapted to their expectations.”
PSA said it forecasts the Chinese market growing 10 percent in 2011, Latin America 4 percent, and Russia 15 percent. PSA is negotiating to build new factories in China and India as it seeks to reduce Europe's share of its sales to 50 percent in 2015 from 61 percent in 2010. [via autonews - sub. required]