Peugeot-Citroen chooses Chennai for it’s Indian manufacturing plant: Official Word Out!

Peugeot 508 Sedan

After months of wrangling on which way Peugoet-Citreon’s Indian plans will go with a number of Indian states wooing the automaker, the French firm has finally come to a conclusion on where it will set shop in India. Tamil Nadu has edged out both Gujarat and Andhra Pradesh, and it will be here from where Peugeot-Citroen kickstarts it’s Indian foray. Sriperumbudur, off Chennai is the location that the automaker has zeroed in on.

At a time, when Gujarat is edging out all other Indian states when it comes to investments from the auto industry, this happens to be welcome news for Motorcity Madras. Peugeot Citroen will invest no less than 4,000 Crore Indian Rupees for setting up the car manufacturing unit, with an total capacity of 3 Lakh units. By the looks of it, the 3 Lakh units capacity points to Peugeot-Citroen’s probable plan of exporting cars out of India.

Peugeot 508 Sedan

Meanwhile, the Peugeot-Citroen factory will provide employment to 5,000 people directly, with an indirect employment potential of up to 15,000 people, which is the other big take away from this story. While the automaker has remained mum about which car it plans to launch first, there was talk about the Peugeot 508 Sedan being the first car that will be the French automaker’s first offering to the Indian car market.

The Peugeot 508 Sedan, meanwhile was launched in China, earlier this year and is a D segment car, rivaling the likes of the Honda Accord and the Skoda Superb. You can read more about the Peugeot 508 Sedan right here. Meanwhile, the last Peugeot car to sell in India was the Peugeot 309 Sedan, which was a great car that was unfortunately let down by Peugeot’s ill timed alliance with Premier Automobiles Limited. Let’s hope that the French automaker’s second coming into India does better than the first.

: Peugeot 508 Sedan

: Peugeot 508 Sedan

: Peugeot 508 Sedan

: Peugeot 508 Sedan

: Peugeot 508 Sedan

: Peugeot 508 Sedan

Via TheHinduBusinessLine

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June 29, 2011 | By Jay Prashanth · Tags:

Comments

3 Responses to “Peugeot-Citroen chooses Chennai for it’s Indian manufacturing plant: Official Word Out!”

Saravanan on June 29th, 2011 6:01 pm

Tamil Nadu and Tamil people are hardworking people. May Peogeot succeed in its endevour in Tamil Nadu. Gujarat state has been reported a lot by newspapers as ‘better than’ Tamil Nadu. But the Hindu-Muslim riots in Gujarat should not be forgotton.

Tamil Nadu education syllabus in higher standard than in other parts of India. More technical journals are published in Tamil than even Hindi. First and only free online Automobile glossary is in Tamil language.

However one seriously hopes present Tamil Nadu government and the CM Jayalalitha fully capitalizes this opportunity and enables Peogeot to achieve success be very careful of highly competitive CMs like Modi. If she can do that other people will come to Tamil Nadu.

If Jayalalitha messes up, Gujarat will squarely defeat Tamil Nadu permanently. Modi is very hardworking and has been visiting small towns in Tamil Nadu asking them to shift their plant to Gujarat state out of Tamil Nadu. Gujarat is also producing small players for autombile components. Jayalalitha should take note seriously and encourage entrepreneurship in Tamil Nadu.

Jayalalitha should be very careful of Gujarat which is very competitive state. She should quickly resolve the School syllabus policy (Samacheer Kalvi) quickly so that it competent Tamil students will pass out and serve Peogeot and other companies to achive success.

Jayalalitha should also standardize Tamil technical terminology at earliest and clean up the Tamil terminology mess and errors and establish more polytechnics so that Tamil students defeat other state people in technical ability.
balasubramani on June 30th, 2011 1:10 pm

comeon peugeot lets compete with ur technology in the indian market.
Ramalingam on June 30th, 2011 9:54 pm

News has been going around for the past 6 months. THe Peugeot team went to AP, TN then Gujarat, then again AP, TN then Gujarat again and again.

One wonders if they were plan to invest. Or probably they may be bargaining for kickbacks.

One may recall the name Vashita Waahan. It was supposed to Indian Volkswagen. But turned out to be a fake company.

It does normally not take few months or a few visits to even settle for a location. TN has India’s largest installed base of car components and Gujarat is absolute no comparison in numbers. Yet these people appear to coming and going without serious commitment.

Obviously yesterdays news “they decided to invest in Tamil Nadu”, then there is U -turn that “Sriperdumbudur is not finalized” – seems very suspicious. Reminds too much of Mr Helmuth Schuster, sacked VW executive, who is of course escaped from India.

TN may be better of getting real deals instead of falling like Andhra fell to Volkswagen scam 5 years back.

TN should encourage local investors. Tamil Nadu has India’s largest number of Small and Medium Enterprises. It is disgusting to be a begging bowl for a foreign company who has been shuttling around and remaining in indecision – probably trying to bargain too much.

Can anyone tell what happened to Bavina car plant in Ranipet – TN’s answer to Karnataka highly priced junk Reva car?

TN should promote SMALL ENTREPRENEURS in wind and solar electricity. TN has largest installed base of wind panels – far margin from the second state in India.

TN politician should identity real players and not be dancing puppets to some foreign corporation who do not show any seriousness to invest.