French manufacturer, Peugeot Citroen, as we know, is all geared for a re-entry into Indian market when it plans to open its new assembly unit in Gujarat. This move by PSA Peugeot would be creating 5000 jobs in India. The company plans to invest $928 million when it sets up its unit in Sanand, Gujarat.
The total area allotted to Peugeot for its Sanand plant is 243 hectares enabling them a manufacturing capacity of 1,70,000 units annually. Initially, Peugeot plans to set up a gearbox and engine manufacturing unit at Sanand facility, and in 2 years, they would be starting to produce cars at this facility.
Recently, Marc Bocque, spokesman for Peugeot Citroen, told they were coming alone and considered that to be a stepping stone. He told Peugeot had gained enormous experience in markets globally. He told they had developed in Russia, Eastern Europe and China. He tells their experience was much different than it was compared to that time. Marc believes this would certainly be a great asset for their future presence in the country.
Peugeot did mark its debut in 1990 in the auto market in India. They had their hiccups that made them leave early given labour issues and poor overall sales.
This time, Peugeot, plans to adopt firmer strategies, which would enable them to establish their brand name in the premier sector and then plan their compact segment debut some time later.