Peugeot is setting up its new plant in Tamil Nadu, using Hindustan Motors current facility. The new plant will manufacture vehicles locally. The Renault example seems to a way even PSA is looking at India. At the moment, the company is working on setting up its new manufacturing plant and even a separate powertrain plant as well. This new plant of PSA will be shared with AVTEC. This is being set up in Hosur and the plant will be functional by 2019.

The ceremony officially marked the inception of PSA-AVTEC Powertrain Pvt. Ltd., a 50:50 joint-venture between Groupe PSA and AVTEC. With initial manufacturing capacity at about 200,000 units per year, the plant will further receive incremental investment to support a progressive ramp-up of the long term project. The plant will be engaged in the manufacturing of next generation gearboxes and engines. The manufacturing capacity for powertrains will cater to the domestic market needs and global OEMs. The performance of the industrial set-up will be supported by a significant level of localisation, in order to reach the necessary cost competitiveness.

Also Read: Peugeot 208 spotted in India | Kia Motors plant under construction

Peugeot 3008 side

This makes it evident that Peugeot is looking at India as its new base for manufacturing and even exporting. Most of the automakers are manufacturing in India and exporting it to multiple markets. Just like Hyundai and Renault, Peugeot will want to begin its Indian operations at the earliest. We reckon, they will be looking at adding more numbers to its total global sales by entering the one of the world’s largest car market. This will offer a good opportunity for the French automaker. India is one of the largest car markets for many brands like Renault, Suzuki and even Honda. Peugeot with it stylish and appealing design can be a good fit too. Many Indian car buyers are looking at something different. With Kia and Peugeot, this could be an opportunity to get back the competition in the market. 

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