French car-maker PSA Peugeot Citroen will start work on its plant at Sanand today. The automaker had on September 1 announced that Gujarat would be the home for its Indian facility as it makes a comeback. The company will invest Rs 4,000 crore in the plant that will produce 1.65 lakh cars annually. Last month, American auto company Ford Motors began work on its second facility at Sanand which will roll-out the first car in 2014.
Vincent Rambaud, director general of Peugeot, Gregoire Olivier, member of managing board and CEO of India operations, Jean-Raphael Peytregnet, Consul General of France in Mumbai, supplier and vendors to the company will be present at the foundation stone-laying ceremony.
Infrastructure at the plant will be at par with Europe, company officials claimed. Hiring for the India operations have already begun and many officials are being given training at company's facility in France.
The European car-maker will produce B-plus, C and D class cars at the 600 acre site adjoining the Nano plant at Sanand, for the Indian market. Its model 508 will be the first to get rolled out in 2014. Company officials have earlier said that certain changes in the C-class cars will be made to suit the requirements of the Indian customer. Later on Peugeot will also bring its hybrid (diesel and electric) vehicles to India. It has already tied up with Ford for diesel engines and with BMW for gasoline engines. Of the 600 acres, about 100 acre will be used by its vendors.
India is poised to become the third largest car market in one decade followed by the US and China. However, it is third month in succession that car sales have dipped in the country.