Tuesday, 31 January 2012

Peugeot to shut down Mumbai office, reviews plans for India, may come in partnership

PSA Peugeot Citroen, a french auto maker looks to shut down its Mumbai Office and would like to review its plans for India considering the bleak financial outlook and uncertainity of the Indian market.

The car maker had already set in place an investment of Rs 4,500 Crore in Sanand, Gujarat with a plan to manufacture 170,000 vehicle per annum, but as per Mr. Jonathan Goodman, director relations presse, PSA Peugeot Citroen, the company plans to review the scheduling of the project, which may lead to some adjustments to the schedule as it currently stands,"

In February 2011, Peugeot had said it was re-entering the Indian market after over a decade. After evaluating a number of potential partners, the company decided to go it alone. Now, however, the carmaker may once again consider a partnership with either Pawan K Ruia, owner of Dunlop India, or Siddharth Lal of Eicher Motors, says a person close to the development. Nothing conclusive has emerged from the negotiations yet, added the person.

However, Mr. Ruia said, we are no longer involved in the discussion however, Mr. Lal declined to comment anything.  In April 2011, the French auto major revamped its top management by appointing M Frederic Fabre as the new head of India operations; he replaced Rajesh Nellore, who had the mandate to spearhead Peugeot's re-entry into the world's seventh-largest automobile market.

The company will come out with an official press release once it evaluates the situation and comes up with a conclusion.



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