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Peugeot likely to return to India in partnership with Tata Motors

PEUGEOT 208

Peugeot 208 hatchback

Peugeot has been mulling to re-enter the Indian car market for a few years now. The company left India back in 2001 and is finding means to do the opposite now, given the market has been growing exponentially for the past few years. With things changing for the better, it looks like Peugeot will be teaming up with Indian car major Tata Motors to make a comeback at the earliest.

The French automotive company ultimately looks forward to make a partnership with Tata Motors after considering other brands including the likes of Mahindra, General Motors and Hindustan Motors. If at all the deal comes through, then production of India bound Peugeot models could very much take place at Tata’s Sanand facility in Gujarat, which rolls out the Nano model.

There can be much more to this partnership, the two companies could end up sharing platforms and engine technologies as well. Tata could use Peugeot’s capable powertrains to power their future models. Also, Tata is a very large manufacturer with a vast array of spare parts distribution channels and strong products that could enable the French manufacturer to learn a few tricks here and there.

peugeot 2008 crossover

Peugeot 2008 Crossover

If Peugeot had to enter India alone, then an investment in the range of $1 billion would have been required which in itself is a massive gamble for any manufacturer to take. Peugeot is expected to mark its return to the country with the 208 hatchback, 308 sedan and 2008 crossover models. With a capable portfolio of products that can give existing manufacturers a run for their money, it remains to be seen whether the Peugeot brand will be well received or not. Since its vehicles will be brought in via the CKD route in the initial phases, lack of localisation could hamper the ability to price products very competitively.

Source – Economictimes