French car manufacturer PSA Peugeot Citroen has chosen Tamilnadu over Gujarat and Andhra Pradesh for its Rs 4,000 crore car plant, a government release said on Wednesday.
This is the first mega investment into the state after the state elections which swept out the DMK and brought the AIADMK back to power. Peugeot officials met Tamilnadu Chief Minister J Jayalalithaa on Wednesday and unveiled their plans to her.
With this facility, PSA Peugeot Citroen joins the list of automobile manufacturers like BMW, Hyundai, Ford and Renault-Nissan that have already set up a plant near Chennai.
According to an official release, PSA has identified land at Sriperumbudur to set up a plant with an initial capacity of three lakh cars per year, catering to the domestic and overseas market.
PSA has been looking for suitable sites for a car plant that will make 3 lakh cars per annum to supply to the Indian and overseas markets. PSA has proposed to establish this Indian project as a 100 per cent subsidiary of the parent company. After evaluating sites in various states, PSA has selected a site near Sriperumpudur in Tamilnadu.
The company would provide direct and indirect employment to 20,000 people at the facility, besides also attracting a large number of auto-component manufacturers from France, it said.
During the interaction, the Chief Minister thanked the PSA executives for selecting Tamilnadu for the project and assured them of the government’s support for the project, it said.
PSA Peugeot is the second largest automaker based in Europe and currently ranked the sixth largest automobile manufacturer in the World. During 2010, PSA had a sales turnover of US $67.30 billion (Rs 3,09,556 crore) and currently ranked 94 among Fortune 500 companies.