French auto giant PSA Peugeot Citroen is planning to set up a production facility in India to get a share in the surging car demand in the country. A person closely associated with the project has revealed that the company is planning a huge investment of about 700 million euros ($884 million) on the factory in Andhra Pradesh, which will have an annual production capacity of 100,000 cars.
Global car manufacturers are working hard to get a share in India’s growing compact car segment, which constitutes about 70 per cent of the total passenger car market in the country. India’s top car maker Maruti Suzuki leads the segment.
The official revealed that Peugeot executives would hold a meeting this month to decide on the upcoming project, before they seek approval from the carmaker’s board and negotiating with the state government.
Europe’s second-biggest carmaker Peugeot is studying opportunities in India, Pierre-Olivier Salmon, a spokesman in Paris told.
Car sales in India reach a record and rose by almost a third from a year ago. Peugeot has earlier said that the company was working on new models for the emerging markets.
The Indian car market has already seen a number of compact car launches including Chevrolet Beat, Ford Figo and Volkswagen Polo hatchback.