Peugeot is testing small petrol engines in India – EXCLUSIVE

Peugeot has been looking to enter India for a while and very recently one of our sources confirmed that the company has already started testing its new 1.0-litre petrol engine. Peugeot was in talks with Indian automakers to set-up  plant in JV. The talks are to work out a deal to utilise the company’s plant in Sanand, Gujarat and utilise it for manufacturing and even use their dealership network as well).

The company has a small technology base in Tamil Nadu, where it is testing hatchbacks and even sedans. The 1.0-litre petrol engine is being tested by the company to understand the behaviour in India.

This engine is being tested to tweak it as per the Indian climatic conditions. Earlier we had spotted the Peugeot 208 and even stated that the French automaker is even targeting a Honda City competitor product. But first the company is looking at adding new products to its line-up and that first one will be a small product.

Peugeot could enter India this time again as a JV, however it will eventually even get Citroen to India.

The French automotive manufacturer has been attracted to India by seeing the successful business model of a majority of the automakers, especially Renault.

Peugeot had plans to enter India in 2011-12 phase too, but it pulled out its plans due to the financial crisis.