Peugeot Eying New Plant in India

As the second fastest growing market for cars after China, India is proving to be a new promised land for the world's auto makers. Most of the big players have already presented plans to built on the Indian appetite for cars, with the medium sized one trailing close behind.

Peugeot announced this week through unofficial channels that it is now looking to erect a new manufacturing facility in India, in the state of Gujarat. According to Business Standard, citing a state industry department official, Peugeot sent its envoys to India to discuss the possibilities. The source says the French auto maker is looking for 150 acres of land.

"We have shown them a site in Bol village near Sanand, which is a proposed industrial estate, to be developed as an automotive hub by the Gujarat Industrial Development Corporation, near Tata's Nano plant,"
the official told PTI. "A final decision is expected to be taken soon by the Peugeot headquarters."

The news of Peugeot looking for land on which to build its facility has been confirmed by the Inward Investment Officer of the Embassy of France in India, Guillaume Page.

According to the state official, the auto maker plans to join the existing 700 French companies conducting business in India (the country is responsible for $9 billion in bilateral trade in 2009, an amount which is expected to grow to $12 billion by next year) as a means to tap into the growing market. According to forecasts, India will be consuming no less than 65 million cars by 2017.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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