Peugeot announces its new industrial facility in India

The new 207 Sportium Special Edition

The return of the leading car maker from France to Indian soil is one that will be closely watched by many, especially those who are conversant with the 309 model, whose production in India came to a halt almost 14 years ago.

It’s been a while since then, and Peugeot is now all set with its clearly defined re-entry formula for India. Although we were informed, that the company will begin with the production of a mid-sized sedan for its Indian customers, the venue and scale of its production were under evaluation at the time. 

Marking its re-birth in India on the auspicious occasion of Ganesh Chaturthi, Peugeot has now announced that its very own production plant for India will be setup in the rapidly developing manufacturing cluster at Sanand located in the state of Gujarat.

With a 600 acre site in the heart of the region, Peugeot is looking at investing as much as 4,000 crores on this new cutting edge facility. Once completed, the manufacturing plant will house a fully integrated body, paint and assembly operations setup, that will take on an initial capacity of 170,000 vehicles per year.  Additionally, an engine and gearbox plant will also be set up forming a full-fledged modern industrial automotive facility for the future production of Peugeot cars in India.

Marking the occasion, Mr. Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, 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. Gujarat offers a proactive business friendly environment, excellent infrastructure and is geographically well-positioned to cater to passenger car markets across India.”   

Inspite having hinted at manufacturing a large hatchback and an entry level sedan on a fixed platform after commencing its production operations in the country, Peugeot’s 207 Sportium hatchback has been regularly seen doing rounds on our roads, which only further stretches our speculative minds about what Europe’s second largest manufactuer is really planning to offer India’s diverse passenger car market in the near future. That being said, the company’s presence at the 2012 Delhi Auto Expo taking place in January may give a better idea of what’s really headed our way.

While the first locally produced Peugeot car is expected in 2014, the inauguration of its new production faciliity in Gujarat, and the commencement of its manufacturing operations in India is both for the company and the Indian car market a very precious gift this Diwali.