The French auto manufacturer, Peugeot has said that it is planning to introduce compact hatchbacks and sedans in the near future in the Indian auto market. Once launched, these vehicles would go in head to head competition with the market leaders in that segment namely Maruti Suzuki and Hyundai Motors. Peugeot is likely to bring in these models to the Indian market once it is ready with its assembly plant coming up in Sanand, Gujarat. Back in its French headquarters, the company has already started working on these models. A company official has stated that the vehicles would be based on Peugeot’s low cost M3 platform.

The company official also added that the company’s assembly operations would be commencing in India in about 2 years time after which these models would be seeing the light of the day. First in pipeline would be an entry level sedan on the likes of the Maruti Suzuki Swift Dzire. It is expected to be powered by a 1.3 litre turbocharged diesel engine. A petrol engine could be on the cards also. The entry level sedan would be followed by a premium hatch, again based on the same platform. Peugeot wants to tap the volume segment market of India and development of these products is a step in that direction.

Peugeot confirmed its India operations when it participated at the 2012 Delhi Auto Expo and showcased some promising models that would be coming to India very soon. However, due to the European economic crisis currently going on, the company has stated that its India operation plans might suffer some delays. Currently the company is looking for a tie-up with a non auto OEM for support in terms of investment and marketing related activities.

Peugeot has slammed brakes on its India entry, delaying its foray into one of the emerging automobile markets in the world. This news comes as a real bummer as the French automaker had showcased a good range of cars at the 2012 Auto Expo. The reason for slowing down the re-entry is to evaluate the complete project to ensure every money is spent rightly. The current Euro crisis has led to drop in sales of PSA Peugeot Citroen and thus Europe’s second largest car manufacturer is reviewing its India plans. The company has shut down its office in Mumbai as part of this evaluation and has re-scheduled the re-entry into India project.

Peugeot acquired land in Sanand in Gujarat for its India facility, pumping Rs. 4500 crore in the project which would give them an annual capacity of 1.7 lakh vehicles. The construction of the plant started in November 2011 and is expected to start rolling out cars by 2014. Just today morning we reported about how Fiat and Peugeot could come together to become a force to reckon with. Peugeot has already tried to partner with Dunlop India and Eicher Motors but only in vain. Currently 39% sales come outside of Europe for Peugeot and the India foray is part of Peugeot’s plan to get 50% of sales outside of Europe by 2015. The Peugeot 208 hatchback could help the company create volumes but an entry in 2014 could be too little too late.

The German car manufacturers are undoubtedly one of the biggies in terms of global presence and sales volumes in the automotive market. Giving them a challenge is not child’s play. The French and Italian manufacturers like PSA Peugeot and Fiat tough produce good cars provide no match to their German rivals. The reason: the enormous financial firepower and wide global reach of the German companies. The German auto giant, Volkswagen currently has a 23.3% share in the European auto market. Fiat and Peugeot though have strong presence in this market, but recently witnessed a fall in its total market share due to global slowdown.

Fiat-Chrylser CEO, Mr. Sergio Marchionne commented that the company is certainly looking at options to get into a tie-up and Peugeot might be a good option. However, he denied that any talks were taking place between the 2 companies. He also added that Fiat is looking forward to share its A and B platforms which will enable it to save billions on development costs. On the other hand, Peugeot had 1.65 billion euros of industrial net debt as of June 30, is expected to report a significant full-year auto division loss on Feb. 15 after repeatedly slashing targets.

The Fiat-PSA alliance could work out in their favour. Peugeot has got models like the 308 and the Citroen C4, segments which would help Fiat to increase its presence in them while Fiat is very strong in compact car segment (Fiat 500) where Peugeot lack good presence. Fiat is already having its presence in India while Peugeot is entering India soon. From the Indian scenario, Fiat could take the help of Peugeot to introduce new models in India while Peugeot can take help of Fiat’s presence in the small car market to increase its own presence.

Source – AutoNews

The French car maker, Peugeot has unveiled a host of its car models at the current ongoing 2012 Delhi Auto Expo. The car maker is bound to arrive in India soon and didn’t leave any stone unturned at showcasing what the Indian customers are going to get in the coming months. Peugeot cars are in general, known for their unconventional styling and design and Peugeot is definitely going to gather the customer insights for their different models. The displayed models at the Expo included the 508 saloon, the 3008 crossover, the RCZ sports coupe, the 908 LeMans racing car and a cut section of the 3008 Hybrid4. Peugeot has already announced its India bound plans with an investment of Rs. 4000 crores to be spent in bringing up an assembly/manufacturing plant in Gujarat.

The 508 saloon displayed at the Auto Expo made its debut in the Indian market only 2 years ago. The car is powered by both petrol and diesel powertrains. The petrol powered 508 gets a 1.6 litre VTi engine that produces 160 BHP of power and 160 Nm of torque and is mated to a manual 6 speed gearbox. It also gets a 1.6 litre THP engine that produces 156 BHP and 240Nm of torque mated to a 6 speed manual or automatic transmission (depending on what you choose). The diesel line-up includes a 1.6 litre HDi FAP engine that 112 BHP of power and 254 Nm of torque mated to a 5 speed gearbox and a 2.0 litre HDi FAP engine with 163 BHP of power and 340 Nm of power with power going to the wheels via a 6 speed manual/auto gearbox.

The 3008 on the other hand, is a crossover of an SUV and an MPV with its ‘Multiflex interior’ where the seats fold the way up to the front passenger seat allowing loads of space. It is powered by the same 1.6 litre VT-i and THP petrol engines and the HDi FAP diesels. The RCZ coupe with its 2+2 layout.

Peugeot will officially enter India on the 5th of January, 2012 at the Auto Expo. The French automaker will unveil the Peugeot brand in India by showcasing its range of cars at the biennial event. Mr. Frederic Fabre, Managing Director of PSA Peugeot Citroen, along with Mr. Thierry Poirat, Vice President, Peugeot India, will be present on the occasion and will address the press conference to the media. Just a last month the company broke the founding stone at it’s India facility, which is located at Gujarat and will start churning out cars in 2014. Till then, Peugeot will have to do its ground work to set up an dealership network.

Those living in and around Pune must have spotted Peugeot vehicles sporting MH46 plates on multiple occasion. Peugeot has given the 207 hatchback and 508 sedan to an independent agency to conduct various tests. These tests are being done to know the road worthiness of Peugeot cars on Indian soil. Peugeot will showcase the 508 sedan at the Auto Expo but we hope that the company showcases the 208 hatchback and not the 207 hatchback. Peugeot will also display the 908 LMP1 Le Mans car and the RCZ sportscar. The French automaker could launch the 508 in India next year, bringing it in as a CBU and following a top down approach. The Peugeot 508 will be powered by a 1.6-liter diesel motor which produces 112 BHP of power. We will have to wait and watch to see how successful Peugeot India is in it’s second innings.

Since a long time, we have had the dose of rumours and speculations that Peugeot is trying to make its presence in India in a big way. Finally all the rumours are laid to rest as Peugeot has decided to setup their plant in Sanand, Gujarat. The Bhoomi Puja which is done before any construction is carried out on the land was done today in the presence of Mr. Grégoire Olivier, Member of the Managing Board PSA Peugeot Citroën and CEO of Asian Operations, Mr. Vincent Rambaud, Director General of Peugeot and Mr. Frédéric Fabre, Managing Director of PCA Motors India.

“I take this opportunity to reiterate and reassure you of the longstanding commitment and dedication that we devote to this project,” said Mr. Vincent Rambaud, Director General of Peugeot. “Peugeot will grow together with you by bringing the best of its passion, knowhow and technology to incredible India, vibrant Gujarat and to all those involved in making our journey successful.” The ground breaking ceremony signifies a very important landmark in the development of Peugeot India’s plans which follows the State Support Agreement (SSA) signature held in Gandhinagar on September 1st, 2011.

The automotive and engine/gearbox plant will be constructed on a 600 acre area along with Peugeot having plans to add a suppliers’ park for a global investment of Rs. 4000 crores. This is supposed to generate around 5000 new jobs in the auto sector. Peugeot also has plans to construct an Automotive Skills Development Institute (ASDI) to be located within the Sanand Automotive cluster and contribute to its further growth and development. Peugeot has plans to showcase their cars at the Auto Expo 2012 to be held in Delhi.

Peugeot Citroen plans to start work at its upcoming plant in Gujarat early next month. The French automakers’ upcoming facility at Sanand will see the stone laying ceremony on the 3rd of November, 2011. The 600 acres site is expected to roll out its first car in 2014. The Peugeot 508 will be the first vehicle to roll out of the assembly line and will compete with the likes of the Honda Accord, Skoda Laura and the Volkswagen Jetta. The design of the plant has been finalized and officials are being trained in France for the development of Peugeot’s India plant.

Peugeot plans to launch a wide array of cars in the country. From small cars like the 207 to biggies like the 508, Peugeot plans to offer a vehicle in all segments. These cars will be offered in both petrol and diesel options and the French automaker is said to have tied up with Ford for the diesel engines. However Peugeot needs to somehow start selling cars in India much earlier than 2014 as by then, companies like Volkswagen and Nissan would have setup a very good dealership network. It will take Peugeot quite sometime to expand its distribution network in the country and the later they start the more difficult it will be for them to crack the competition Indian car market.

After alot of delay, PSA Peugeot Citroen has finally decided to set up a plant at Sanand in Gujarat. The French automaker plans to invest close to Rs. 4000 crore on its upcoming facility which is 40 kms away from Ahmedabad. This plant will have a production capacity of three lakh units per annum. Tamil Nadu and Andhra Pradesh were also in the list of Peugeot while deciding on a facility in one of the most promising car markets in the world. Peugeot is already testing the 207 hatchback and 508 sedan in India, which they plan to launch once they commence operations in the country. Gujarat houses Tata Motors, General Motors, Ford Motors plants and Maruti Suzuki will be opening its manufacturing facility in the near future.

“A Peugeot delegation, including Gregoire Olivier, CEO (Asian operations) and Frederic Fabre, managing director of PSA Peugeot (India project), will be coming to Ahmedabad on Thursday to sign a memorandum of understanding for the car project.” a source said.

PSA Peugeot Citroen is yet to decide on the location of its plant in India. The French automaker has been testing its 207 hatchback and 508 sedan in Pune, which suggested that a launch could be around the corner. However with no plant in place, it only points to a CBU route for Peugeot cars for the time being. The company seems to be in no hurry to commence production locally and is still in aggressive talks with Governments of Andhra Pradesh, Gujarat and Tamil Nadu. However, the final decision on the location will be taken by the end of this year.

Now once the land is allotted, it will take atleast two years before production can commence. Designing and constructing the factory and assembly line is not a one day job. This means Peugeot can, in no way produce a car in India before 2014. Clearly, saving a few bucks in land costs will lead them to lose a large chunk in market share. Classic case of penny wise, pound foolish? You bet!

Peugeot had recently announced its aggressive plans for India. Now two cars from the company, the Peugeot 207 hatchback and Peugeot 508 sedan were spotted on the expressway undergoing regular testing. Peugeot-Citroen plans to setup a plant in Chennai but they were really quick with starting the testing of its cars. This shows the French automaker wants to waste no time in entering the Indian car market for its second innings. These are just two of the cars that Peugeot has planned for India but the company has aggressive plans to enter every segment of the competitive Indian car market.

The Peugeot 207 is a premium hatchback and will be launched in both petrol and diesel variants. It will feature engines which will help it to classify as a small car and thus enable the company to save on excise duty. The Peugeot 508 is a D-segment sedan which will compete with the Volkswagen Passat, Honda Accord and Skoda Superb. The Peugeot 508 will be powered by a 2.2-liter diesel motor producing 200 bhp of power and a massive 450 Nm of torque. It will be mated to an automatic gearbox and Peugeot is most likely to showcase these cars at the 2012 Auto Expo. The 508 will be launched first and the 207 will follow later. The 207 will be heavily localized, while the 508 might be brought down as a CKD unit.

Source – Team-BHP