Peugeot zeroes in on Gujarat edging out Tamil Nadu and Andhra Pradesh!

Peugeot 508 Sedan

After many U-turns, Peugeot finally seems to have zeroed in on India’s most industrialized state, Gujarat, for its second coming to India. While there were months of speculation as to which way Peugeot will swing as three states, Andhra Pradesh, Tamil Nadu and Gujarat, were vying for the automaker’s attention, Peugeot has finally made a decision regarding where it will set up a manufacturing facility. While three states initially tried to entice the French automaker, it turned out to be a two horse race soon after the Telangana crisis in Andhra Pradesh broke out.

While there was some news that Peugeot has its eyes firmly on Tamil Nadu for its manufacturing facility, the firm later clarified that it was evaluating all its options. Now that it has zeroed in on Gujarat, the Peugeot plant is expected to be in Sanand, the same location which plays host to Tata Motors’ Nano manufacturing unit and Ford’s upcoming second manufacturing unit in India. Peugeot will invest INR 4,000 Crores in Gujarat for the manufacturing facility which will have an annual capacity of 3 Lakh cars.

Peugeot 207 Hatchback

With this latest development, Gujarat seems to have pulled off a march ahead of Tamil Nadu, when it comes to attracting investment in the automotive sector and is soon turning out to be the automobile hub of the country with a raft of big ticket investments. The first product that Peugeot will launch in India will be the 508 Luxury Sedan followed by the 207 Hatchback. These cars will come with both petrol and diesel engine options and 2013 is the expected year in which they will be launched in India.

Meanwhile, here’s a statement emerging out from he Gujarat Chief Minister Narendra Modi’s office, regarding Peugeot’s investment in Gujarat.

A Peugeot delegation, including Gregoire Olivier, CEO (Asian operations) and Frederic Fabre, managing director of PSA Peugeot (India project), will be coming to Ahmedabad on Thursday to sign a memorandum of understanding for the car project.

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August 31, 2011 | By Jay Prashanth · Tags:

Comments

3 Responses to “Peugeot zeroes in on Gujarat edging out Tamil Nadu and Andhra Pradesh!”

Earthfusion on August 31st, 2011 12:56 pm

This car project is known as PSA A9. It has total 9 variants of same design. Hatchback, sedan, station wagon and few more with same interior style.
bhavesh on September 3rd, 2011 3:39 pm

yes gujarat is now on rockets fire speed nd now no one can stop. pray to god.gujarat is the only state who gets 4 companys in just 1 year only.
Indian on September 5th, 2011 3:40 pm

Tamil Nadu will stop Gujarat. M&M chose Tamil Nadu for its small car. Eicher chose Tamil Nadu for its new bike plant. These stories are just over a month old. Michelin chose Tamil Nadu. This story is over 3 months old. At the end of the day most spare parts any way will come from Tamil Nadu. Lets hope anyway that Peugeot benifits from the new location.

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