French carmaker PSA Peugeot Citroen may revive a plan to set up a manufacturing facility in India to tap surging car demand in the country, Bloomberg News reported, citing a person with direct knowledge of the matter.
Europe's second-biggest carmaker Peugeot may spend about 700 million euros ($884 million/ Rs 4,155 crore) on the factory with annual production capacity of 100,000 cars in Andhra Pradesh, said the person, who asked not to be identified because the discussions are confidential. French 'Lion' was here a decade ago
Global car companies are vying for a share of India's booming compact car segment, which is about 70 per cent of the total passenger car market.
In June, Peugeot said it is working on two new models for emerging countries as it seeks to break out of its dependence on mature markets.
Bloomberg quoted a person as saying Peugeot executives intend to meet this month to decide on the project, before seeking approval from the carmaker's board and starting negotiations with the Andhra government.
Peugeot is studying opportunities in India, Pierre-Olivier Salmon, a spokesman in Paris, told Bloomberg. There is no decision on India and no timetable for a decision, he was quoted as saying.
Car sales in India struck a record in May, rising by almost a third from a year ago, as rising incomes in an economy set to grow 8.5 per cent this year boosts demand.