Still looking at sites for India facility, says Peugeot

PSA Peugeot Citroen says it is still mulling over three locations to set up a Rs 4,000-crore manufacturing facility in India.

The PSA Peugeot delegation led by CEO of Asian operations, Mr Gregoire Oliviere, had met high-ranking officials from Tamil Nadu on Wednesday, and on Thursday was holding a meeting in Gujarat, a spokesman for the company in Paris told Business Line .

While no meeting was currently planned in Andhra Pradesh, a location in the State was still an option, he said. “It doesn't mean that it isn't in the race anymore.”

“Our decision has not been taken at this stage. We are still actively looking for a location,” he said, declining to give a timeline.

Peugeot's stand is at odds with a statement from the Tamil Nadu Government, following Wednesday's meeting with Chief Minister, Ms J. Jayalalithaa. The Government said the French firm had selected a site near Sriperumbudur and had requested a package of support, including land. The Chief Minister had assured the support of the State Government for the expeditious implementation of the car project,” the statement said.

Peugeot, which had previously exited India in 1997 amid losses and a labour dispute, announced its intention to start both commercial and industrial operations in February. The company will begin with a mid-sized sedan car.

The company, like other European automobile manufacturers, has been attempting to reduce its dependence on the weaker European market. The company, which has a presence in 160 markets, wants 50 per cent of its sales to come from outside Europe by 2015.

According to the Tamil Nadu Government, the facility would employ around 5,000 people directly, with an initial capacity to produce 3 lakh cars every year.

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