Peugeot Group likely to make a comeback in India

Peugeot had made an entry in India in the early 90s as a JV with Premier and now the company is looking at making a comeback as per a report from ET. Peugeot was testing its 207 and 5008 products in India in 2011, however they decided to pull out. Peugeot (PSA) has hired a consultancy agency to conduct a report. The company will be finalising their blueprint for the Indian car market by the end of this year.

Carlos Tavares, a former Renault veteran, turned around Peugeot’s fortunes as the French Group was struggling to make profits. When a Group member was contacted, he mentioned, “PSA has implemented a new organisation by regions. India-Pacific region shows India’s importance to PSA. But at this stage, there’s no decision for a rapid return to India.”

He further continued, “The plan is to have the entire group’s presence in India right from two-wheelers, passenger vehicles to light commercial vehicles in the medium term. Immediate focus will be on two-wheelers, and with the help of Mahindra & Mahindra, the company will try to establish its presence by 2017 and build Peugeot brand, before expanding to passenger vehicles by 2020.”

Mahindra will be using the Peugeot platforms as the Indian manufacturer has a stake in it and it will even introduce the Luna brand again with a Peugeot moped. The two-wheelers are likely to be manufactured in the Mahindra’s Pithampur plant. For the four-wheelers, PSA is looking at Sanand, Gujarat and Chennai in Tamil Nadu.

Peugeot was one of the first companies to enter India, even the government had opened up the country for foreign investment. After three years of working with Premier, the French company pulled out due to issues with the local partner. Peugeot did several studies after that between 2001 and 2010 and even was looking at setting up a plant in Sanand in 2011, however it didn’t due to financial crisis.