The ongoing slowdown in Europe may lead to “some adjustments” in French car major PSA Peugeot Citroën’s India business plan. Speaking to Autocar Professional from Paris, a company spokesperson said, “Peugeot is currently evaluating the scheduling of its project in India, which may lead to some adjustments to the schedule as it currently stands.”
The company’s earlier stated plan was to roll out cars from its Rs 4,000-crore plant in Sanand, Gujarat, from 2014. The first car to be assembled there is the premium 508 saloon. The groundbreaking ceremony for the plant with a planned annual production capacity of 170,000 cars was held on November 3, 2011. It is unlikely that the timeline will get rescheduled significantly, even though there may be some adjustments in investment figures. “India is a key strategic market for the Group,” says the spokesperson.
The India business will play a key role in Peugeot’s plan to “enhance internationalisation” of the company. Currently, 41 percent of Peugeot’s global sales come from markets outside Europe. “The target is to touch 60 percent by 2020,” Vincent Rambaud, director general, PSA Peugeot Citroën, had told Autocar Professional. During this year, the car industry’s sales in France are expected to fall by three percent.
The Peugeot spokesperson also added that the company is not shutting down its India office, but “switching it (from Mumbai) to Ahmedabad as a consequence of its agreement with the Gujarat government.” It is also learnt that the Ahmedabad office is scheduled to be inaugurated on February 1.