Southern India appears to be the favoured destination for two new carmaking projects currently under discussion.
PSA Peugeot Citroen plans to make a second foray into India after an earlier JV with Premier Auto. The company is looking for land for a proposed manufacturing plant. A high level source in the Andhra Pradesh government said company officials have met the state’s chief minister Kiran Kumar Reddy for talks about the proposed plant.
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The state is said to have offered PSA two sites, one near the new international airport and another near Nellore. However, PSA is also scouting for land in the ‘automotive cluster’ near Chennai, capital of the south Indian state of Tamil Nadu, which is even more attractive because other major car OEMs already have facilities – and therefore suppliers there. Peugeot is mulling various options before taking an expected decision some time in January.
Malaysian national carmaker Proton Holding is in the final stages of discussions with a global OEM to set up contract assembly and plans to finalise this in the first quarter of 2011. Proton plans a subsidiary that would work with a local partner for distribution. It will offer models like the Saga, Persona, Exora multipurpose vehicle (MPV) and Emas hybrid.
