Wednesday, 31 August 2011

PSA Peugeot Citroen to set up Rs 4,000 Cr facility in Sanand - Official

French Automaker, PSA Peugeot Citroen will set up a Rs 4,000 Crore manufacturing facility at Sanand, 40 Kms from Ahmedabad. Sanand is emerging as a huge Auto hub in India. Already well placed Auto hubs in India includes Gurgaon(North Cluster), Pune(West Cluster), Chennai(South Cluster). 

Sanand which already includes Automakers like Tata Motors Nano plant, General Motors facility at Halol and also has in news investment lined up from Ford Motors, Maruti Suzuki and now even from PSA Peugeot Citroen. 

An announcement is likely in three days, the official said. "A Peugeot delegation, including Gregoire Olivier, CEO (Asian operations) and Frederic Fabre, managing director of PSA Peugeot (India project), will be coming to Ahmedabad on Thursday to sign a memorandum of understanding for the car project," he said. 

This will be Peugeot's re-entry in India after a decade. Earlier, it had a partnership with the erstwhile Premier family and formed a joint venture Peugeot PAL India. It pulled out from the JV in 2001. Now, the company plans to manufacture a mid-sized sedan in Gujarat with a 3 lakh cars per annum capacity.

A Peugeot delegation met chief minister Narendra Modi two months ago and was given the option of three locations which included Sanand and two places in central Gujarat which has a huge land bank.


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