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The last of the 10 global auto majors to enter India, PSA Peugeot Citroen is planning to start domestic sales next year itself.
In a top-down strategy akin to Volkswagen, the Peugeot brand will start with completely-built unit (CBU) imports of two luxury models, the ‘RCZ' sports coupe and the ‘3008' crossover. A premium sedan, ‘508', is expected to join the line-up in 2014, assembled at its new Gujarat plant.
“We will start with CBUs and then follow it up with 508. We will then go to different segments, starting from C-segment (sedan) and then later B-segment,” the PCA Motors India MD, Mr Frederic Fabre, said, while unveiling the models at the Auto Expo.
Mr Thierry Poirat, Vice-President, Peugeot India, said: “Till 2014, we will be setting up our sales network. The initial plan is to tap the top 15 cities. Quality of service and network expansion is top priority before launching more models.”
The company, which has re-entered India after almost a decade, has invested Rs 4,000 crore at the plant for an initial annual capacity of 1.7 lakh units. With allotted land at 560 acres (292 acres initially), this can be taken up to 3.4 lakh units as well.
To reduce costs, Peugeot is also planning to assemble engines locally, though it says it needs to see where the diesel demand ends up by 2014 to take a decision on the engine capacities.
“We are an expert on diesel engines, so we have some ideas. We will start with premium cars to set up the brand. Smaller cars will come after that,” Mr Poirat said.
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