Peugeot has said it will enter the Indian market without mentioning it has tried before.

Promising "both commercial and industrial operations", it said the brand "will produce, as a first step, a mid-sized sedan car. The future production site's location is currently under evaluation".

Managing director Rajesh Nellore is heading group activities from Mumbai.

"India is a key market and this new [implementation] reflects our ambition to become a global player. As in China, we will offer Indian customers vehicles adapted to their expectations" said Asia region chief Grégoire Olivier.

The PSA group wants to make 50% of its sales outside Europe by 2015, compared to 39% in 2010.

The Hindustan Times noted that, in 2008, PSA Peugeot Citroen had appointed Nellore to head projects for India - based in Chennai rather than Mumbai. 

"PSA Peugeot Citroen is no stranger to India", the paper noted, saying the automaker had entered into a partnership with the Premier family resulting in a joint venture called Peugeot PAL India, from which it pulled out in in 2001. 

According to the paper, the company had earlier conducted a feasibility study and said that a decision to enter the burgeoning Indian passenger car market, which is expected to reach near 2m units in 2010-11, would be taken in 2009. 

Before that, in 2009, Peugeot Citroen was scouting for a location in Tamil Nadu and Andhra Pradesh, for which it had met government officials in the two states to set up a manufacturing facility. 

The company was reportedly in discussions with the Automotive Research Association of India to understand the regulations and homologation requirements for launching products like its Peugeot 307 hatchback and Citroen C5 sedan in the country.

Later, Nellore said 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".