PSA Group is expected to make an official announcement about their re-entry into the Indian market through the CK Birla Group.
Reported by French financial newspaper, LesEchos, the French automotive manufacturing group will create a joint venture with the CK Birla Group. The Birla Group currently owns the operation of Hindustan Motors, where the vehicles for Mitsubishi Motors is manufactured in Chennai.
The PSA Group consisting of the Peugeot and Citroen brands currently, had entered the Indian market over 20 years ago in association with Premier Automobiles Group. At the time, the Peugeot 308 was assembled and sold in India. But in 1997, Peugeot pulled out of the Indian market.
The brand had tried to re-enter the Indian market in 2011, with plans to set up an 170,000 annual capacity manufacturing facility. But financial problems led the PSA Group to delay their plans.
The JV with the Birla Group will open doors for the manufacturer once again for the Indian market. the Birla Group is expected to integrate the production of Peugeot vehicles to their Chennai facility as a part of the joint venture.
The joint venture is said to be officially announced by Carlos Tavares, the Chairman of the Managing Board of PSA Peugeot Citroen on January 25, 2017. Currently the group is the largest automotive manufacturer in France and produced 3.14 billion units globally. According to analysts, with their return to the Indian market, production is projected to double for the manufacturer by the year 2020.