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PSA Peugeot Citroen to set up Rs 4,000-cr facility in Gujarat

By Motortrend India Staff   |   30 August,2011

PSA Peugeot Citroen will set up 4,000-crore facility at Sanand in Gujarat, an emerging auto hub in the country after Gurgaon, Pune and Chennai. A senior official in the Chief Minister’s Office said the multinational zeroed in on Gujarat after exploring locations in Tamil Nadu and Andhra Pradesh.

An announcement is likely in three days, the official said. “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,” he said.

The bikes and passenger carmaker is likely to be allotted land in the neighbourhood Ford Motor’s upcoming facility in Sanand, 40 km from Ahmedabad, also home to Tata Motor’s Nano project.

A Peugeot delegation met chief minister Narendra Modi two months ago and was given the option of three locations which included Sanand and two places in central Gujarat which has a huge land bank.

Sanand came into the limelight after Tata Motors relocated Nano mother plant from Singur in West Bengal. The town got another shot in the arm when the fourth-largest auto company Ford Motors signed an agreement with the state government on July 26 to set up its 5,000-crore facility at Sanand. The Nano plant is set up over 1,100 acre while Ford has been allotted 400 acres by the state government.

Now, with Peugeot deciding in favour of Sanand, the town strategically located along the proposed Delhi-Mumbai Industrial Corridor will see further transformation, given its connectivity to road, rail and major ports like Kandla and Mundra.

Gujarat houses General Motors’ largest India facility at Halol near Vadodara. Maruti Suzuki India, too, has announced to set up its second plant in Gujarat which has evinced interests from Bajaj Auto and Hero Honda (now Hero Motocorp) as well.

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