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Peugeot May Set Up a Factory in Andhra Pradesh

By Motortrend India Staff   |   01 November,2009

The Andhra Pradesh government is trying to impress the French car maker Peugeot, with chief minister K Rosaiah formally asking the French government to convince the automobile firm to set up its manufacturing firm in the city.

“The AP government has offered to allocate around 800 acres of land near the Shamshabad airport to Peugeot along with a ‘suitable’ package of fiscal incentives and infrastructure benefits,” said Sam Bob, the industries secretary.

Peugeot was tending to setting up a unit in Andhra Pradesh and such an indication came from a French delegation led by the trade minister, Ms Anne-Marie Idrac during their meeting with the chief minister. Hyderabad is been selected by the technical team of Peugeot after assessing other locations.

It is expected that the company is looking at an investment of Rs 1,500 crore for the project. It was also expected that Peugeot will manufacture low cost cars in emerging markets like India by 2010, but it is also not clear whether the French auto major will bring in the Peugeot or the Citroen brand first.

“Decisions on product portfolio are expected to be taken after the finalization of the location. But, the company intends to launch both Peugeot and Citroen products in a limited time span,” said a person familiar with the development.

It will be the first ever major investment by an automaker in Andhra Pradesh, if the French car maker decides to set up its facility in the state.

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