Making its re-entry into India, French auto major PSA Peugeot Citroen on Thursday inked a memorandum of understanding with the Gujarat Government to set up an integrated manufacturing facility at an investment of Rs 4,000 crore (Rs 40 billion) at Sanand near Ahmedabad.
The agreement was signed by Gujarat principal secretary Maheswar Sahu and PSA Peugeot vice-president (emerging market and India) Fredic Fabre in the presence of Gujarat Chief Minister Narendra Modi in Ahmedabad.
"The fully integrated facility of PPC, the first one in India, will be set up on 584 acres with an investment of Rs 4,000 crore (Rs 40 billion).
"It will have an initial capacity of 1,65,000 units annually and is expected to be commissioned by end of 2013," an official statement stated.
"Gujarat
"We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020," Varin said.
The French carmaker was present in India through a joint venture with Premier Automobiles Ltd nearly a decade ago.
The joint venture was later wound up and the company, PAL Peugeot Ltd, stopped operations.
With the new agreement, Peugeot will be a neighbour of Ford and Tata's Nano plants in Sanand, an upcoming auto hub some 40 km from Ahmedabad.
The firm had been scouting for land for its India entry for the past few months in Tamil Nadu, Andhra Pradesh and Gujarat.
