French car giant Peugeot is set to launch itself in India next year. The company may set up a manufacturing plant either somewhere in Andhra Pradesh or in Tamil Nadu. There are reports that the company is already in negotiations in the two states with state governments.
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker in Europe.
Peugeot's roots go back to nineteenth century coffee mill and bicycle manufacturing. The Peugeot company and family is originally from Sochaux, France. Peugeot retains a large manufacturing plant and Peugeot Museum there. It also sponsors the Sochaux football club, founded in 1928 by a member of the Peugeot family.
Peugeot is a long way off from its ambitious target of selling 4 million units annually by the end of the decade. This year its sales projects put it at 2 million, but chief executive Jean-Philippe Collin has a plan in place to reach the targets set out by parent company PSA.
The plan involves expansion on two fronts. Firstly, Peugeot plans on developing new models to compete in segments where it currently does not compete. Collin figures the French automaker currently competes in 72% of market segments, but wants to get that figure up to 90%. Despite Peugeot's sportscar racing program, the company is not prepared to build a pure sportscar any more hardcore than the upcoming 308 RC Z sports-coupe. It is pursuing government funding to develop a diesel-hybrid drivetrain, however, which might be key to its expansion.
The company like many other car manufacturers are truly smitten by the growth in the auto sector in last more than a decade.
There are reports that the company conducted consumer clinics in October last year with market research firm IMIRB, and is looking at bringing its hatchback 307 and sedan C5 in India. It had discussions with the Automotive Research Association of India to understand the regulations and homologation; thereby making the vehicles, meet the Indian rules and norm, as revealed by sources.
The company is said to be considering bringing some new and alluring small models to the Indian market. Peugeot had made an unhappy exit from the Indian automobile market a decade ago.
A decade ago this second biggest car maker of Europe had to exit because of differences with their Indian partner, the Doshis. At present, the company is learnt to be studying the 1.5 million Indian passenger vehicle market.
