French carmaker PSA Peugeot-Citroen has decided to set up its India plant at Sriperumbudur, on the outskirts of Chennai. The Rs 4,000 crore, 300,000 capacity plant will roll out a mid-size saloon that is currently being developed at the carmaker’s Vigo plant in Spain.

The choice of location for Peugeot was between Andhra Pradesh and TN and what seems to have tipped the decision may have been the existence of a vibrant supplier network and well-qualified talent pool and excellent port facilities.

Peugeot’s decision to go to TN makes it the fifth OEM to set up base in the state after Ford, Hyundai, Nissan. Peugeot’s India operations are headed by M Frederic Fabre.