French carmaker Peugeot has signed an agreement with the Gujarat government to invest Rs 4,000 crore in setting up a plant in the State. The plant, with an initial capacity of 1,70,000 vehicles per year, will come up in a 600-acre site in the heart of the rapidly developing Sanand automotive cluster.
The plant will have options for further expansion. Peugeot will also set up an engine and gearbox plant. This new investment will directly add up to 5,000 new jobs to the automobile hub and also create further economic and employment opportunities in the supplier park adjacent to the site. Peugeot’s first car in India will be its 508 saloon and it is expected to be launched in 2014.
Gujarat chief minister Narendra Modi and Philippe Varin, chairman, PSA Peugeot Citroën, presided over the agreement signing ceremony. Philippe Varin said, “We are proud to announce this new milestone in Peugeot’s continued global expansion and to have chosen to grow our Indian roots in the State of Gujarat. We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020.”
Peugeot was earlier expected to set up its India base in Chennai. The Tamil Nadu government had made an announcement to this effect in June.
With its arrival in the Indian market, Peugeot adds a new milestone to its development. Peugeot, which boasts of being the first carmaker to launch a diesel hybrid, says it will build on its 200 years of industrial experience to bring its deep engineering expertise and innovation to India.
The company’s India investment emphasises the brand’s long term vision to offer its customers and dealers a wide range of products progressively introduced and well adapted to the market. Now that it has announced its arrival, Peugeot will be present at the Auto Expo 2012 in New Delhi in January.
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