New Delhi: The second largest carmaker of Europe, PSA Peugeot Citroen, will take a final call by this year-end on whether to enter India, although sometime back it was determined to set up shop in the country.
The company, which had decided to go slow on starting its operations in India due to the global meltdown, is conducting a feasibility study on rolling out its vehicles here as well as for sourcing opportunities for global operations.
“We are assessing the Indian market now whether we will be present there or not. These are all speculations that we are launching our products. The decision is yet to be taken, which might happen by the end of this year,” a PSA Peugeot Citroen spokesperson said from France.
The company is studying the possibility of marketing the Group’s vehicles in India, he said, adding that “a decision on the industrial and commercial implantation of Peugeot Citroen in India could be made in 2009”.
The study is focusing on areas such as possibilities for industrial production and being able to meet Indian customers’ expectations, he said.
“We are also assessing the various opportunities offered by the country in terms of sourcing components,” the official said.
The spokesperson, however, did not give any specific reason as to why the company started the feasibility study.
Earlier this year, Peugeot Citroen was scouting for a location in Tamil Nadu and Andhra Pradesh, for which it had met the government officials in the two states, to set up a manufacturing facility.
Last year, the company had appointed Rajesh Nellore as vice-president in charge of the projects for India and had set up an office in Chennai.
The company was reportedly in discussions with the Automotive Research Association of India to understand the regulations and homologation (making the vehicles meet the Indian rules and norms) needs for launching its products like hatchback 307 and sedan C5 in the country.
Later, PSA Peugeot Citroen vice-president (India) Rajesh Nellore had said that the global economic crisis had slowed down the company’s plans, but was strongly in favour of operations in India “as and when conditions become favourable”.
PSA Peugeot Citroen is no stranger to India as it had entered into a partnership with the erstwhile Premier family resulting in joint venture Peugeot PAL India. However, it pulled out from the JV in 2001.