Peugeot Eyeing India Market
Published By : 28 May 2015 | Published By : QYRESEARCH
Peugeot, the second largest car manufacturer in Europe is eyeing for a comeback to Indian market. India is expected to become the third largest automotive market by 2020, with staggering annual sales of 5 million automotive units. According to the reports, the parent company PDA Group is testing the waters in India and has commissioned a study for the purpose. By the end of the year, the company will take a decision about entering India.
When Carlos Tavares, who earlier worked with Renault, took the reins of Peugeot, the company made a turnaround globally. Its plans regarding coming back to India can be attributed to its turnaround under the leadership of Tavares, which has given confidence to the car manufacturer to expand into Asia Pacific. According to a spokesperson of the group, the company is cautious about entering Indian market and will take no rapid decision. People familiar with the development have revealed that Peugeot will start with the two-wheeler market before entering into the car market.
If reports are true, Peugeot has joined hands with Mahindra & Mahindra to establish its presence in India by 2017. M&M has recently taken a majority stake in PSA’s two-wheeler business and is expected to help the automaker in expanding into India as well as strengthen its own two-wheeler business through the automaker’s platform. Insiders reveal that Mahindra might use its Pithampur manufacturing facility to produce two-wheelers for Peugeot.
This is not PSA’s first attempt in foraying into Indian market. After the government opened up investment to MNCs, PSA was one of the first companies to enter India. However, its journey in India was cut short owing to differences with its local partner. Later, plans with Tata Motors also did not work out. However, this time it definitely plans to enter India- either partnering with Mahindra, or with Dongfeng, a Chinese partner, or going solo.