PSA Peugeot-Citroen has begun the process of looking at locations for its car project in India, local press reported today. The company was said to have Rs1,500 crore (US$31m) to invest.
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The Economic Times said that the French group had begun negotiations with the government of Andhra Pradesh, which had offered 800 acres of land near Hyderabad. Tamil Nadu is also being looked at, the Times said.
It is thought that the French group will look to roll-out low cost cars in emerging markets like India by 2010.
The Economic Times quoted a source familiar with the situation saying: “Decisions on product portfolio is expected to be taken after the finalisation of the location. But, the company intends to launch both Peugeot and Citroen products in a limited timespan.”
Back at the start of the year, PSA said it was looking at local manufacturing options as part of a strategy to develop a significant presence in India’s market.
