Peugeot may form alliance with Tata in India

We had first revealed about Peugeot’s re-entry into India and also the fact that they had brought in the Peugeot 208 hatchback for testing.

Now, PSA Peugeot Citroen and Tata Motors are reportedly in discussions to form an alliance that might possibly have Peugeot using Tata Motors’ production and distribution facilities.

The two firms are also likely to share engine technologies in the future.

Tata Motors may use its manufacturing facility at Sanand, in Gujarat for Peugeot cars. The factory was set up to produce the Nano. However, the Nano has not been performing as expected as also has come under sever threat from competition, lately. As per ET, people close to the development have said that PSA wants to tie-up with a reputed local carmaker with a strong product and spare parts distribution reach and popular brand recall. The French giant is also looking at other car manufacturers, but Tata Motors seem to be the prime contenders.

PSA Peugeot Citreon, has been reviewing its foreign plans, ever since its bailout and under the leadership of its chairman, Carlos Tavares. The possibility of launching the 208 hatchback, 308 sedan and the 2008 crossover in India is being explored.

Peugeot had a collaboration in India, earlier, with Premier Automobiles Ltd., in the 90’s, however, the French company had exited the Indian market. This would be Peugeot’s second stint in India and they will look to gain a firm foothold this time, to make a mark in this industry.