Peugeot carmaker to make a comeback in India through Birla venture

The carmaker has signed a joint venture deal with Birla Group for a Chennai assembly plant with annual production capacity of 12,000 vehicles, sources said.
Puegeot. (File photo | Reuters)
Puegeot. (File photo | Reuters)

PARIS: French carmaker PSA Group will announce a return to India this week through a manufacturing venture with New Delhi-based CK Birla Group, Les Echos reported on Monday.

The maker of Peugeot and Citroen cars, absent from the fast-growing Indian market since the late 1990s, has signed a joint venture deal with the family-owned conglomerate to include a Chennai assembly plant with current annual production capacity of 12,000 vehicles, the French daily newspaper said on its website.

A PSA spokesman declined to comment on the report.

Under Chief Executive Carlos Tavares, PSA is pursuing an ambitious recovery plan after a 2014 brush with bankruptcy and has pledged to find an Indian partner by 2018 to resume production in a market that registers about 3 million new vehicles a year.

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