Peugeot to re-enter Indian Automobiles

Europe's second-biggest automaker, after a long 10-year hiatus, PSA Peugeot Citroen, announced to re-enter in the Indian market with a mid-sized sedan. According to the company executives as it eyes a foothold in one of the world's fastest-expanding automobile market ie. India.

To start in India, it would start production of a new India-specific mid-sized sedan. PSA Peugeot Citroen executive V-P(Asia) Gregoire Olivier said that This move reflects our ambition to become a global player.

As in China, we will offer Indian customers vehicles adapted to their expectations. The company announced its intention with both commercial and industrial operations for the Indian market. It has appointed Rajesh Nellore as the Managing Director for the India operations who will operate out of Mumbai.

It has also set up an office in Chennai too.Company is planing to produce a mid-sized and a compact car, but the company did not mention any product plans for the local market. Peugeot Citroen had earlier decided to go slow on its Indian plans on the back of global economic slowdown.

It has now finalised a greenfield plant in India to manufacture vehicles locally.Peugeot Citroen reported a profit of 1.13 billion euros in 2010, compared with a loss of 1.16 billion euros in 2009, buoyed by successful new models and recovery in global auto demand.