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Home arrow News arrow Automotive arrow Peugeot to set up Rs 4000cr fully integrated manufacturing unit in Sanand
Peugeot to set up Rs 4000cr fully integrated manufacturing unit in Sanand Print E-mail
Written by James   
Friday, 02 September 2011
Gandhinagar: PSA Peugeot Citroën plans to invest 4,000 crores (approximately 650M€) on a 600 acre site in the heart of the rapidly developing Sanand automotive cluster in Western India, to set up a fully integrated manufacturing unit, engine and gearbox plant.

Peugeot will build a cutting edge vehicle manufacturing facility integrating body paint and assembly operations with an initial capacity of 170 000 vehicles per year with options for further expansion. Additionally, an engine and gearbox plant using the latest and most advanced power train technologies will help constitute a fully fledged modern industrial automotive facility.

This investment will directly add up to 5,000 new jobs to the automobile hub and also create further economic and employment opportunities through an extensive supplier park adjacent to the site to provide the company with necessary parts and services. The first locally produced Peugeot car is expected in 2014.

This plant will also provide indirect employment to 25,000 persons. The construction near Sanand is scheduled to begin this year end and commissioned by end of 2013.

GIDC has reserved another 25-acre land for ancillary industry. PCA envisages exporting 25 per cent of the production, paving the way for Gujarat emerging as an automobile export hub.

"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. Gujarat offers a proactive business friendly environment, excellent infrastructure and is geographically well-positioned to cater to passenger car markets across India," said Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën.

Peugeot and the Government of Gujarat also intend to create an Automotive Skills Development Institute (ASDI). This initiative reinforces Peugeot’s commitment to deliver a globally consistent level of high quality production, products and services to its customers and will contribute to the development of highly skilled automotive manpower in the region. Building on its 200 years of industrial experience, Peugeot will bring to the Indian market its deep engineering expertise and innovation.

On the auspicious occasion of the Ganesh Chaturthi (The festival of Ganesh, the Indian God of wisdom, prosperity and good fortune), Chief Minister of Gujarat, Narenda Modi, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, presided over a ceremony to mark the signature of a State Support Agreement (SSA) between Peugeot and the State of Gujarat.

The Agreements were signed by Gujarat's Principal Secretary for Industry, Maheshwar Sahu and Vice President of Emerging Market Programs & India of Peugeot Citroen Automobiles, Frédéric Fabre.

"We assure all support to Peugeot for fast track implementation of the Project," said Narendra Modi, during the signature ceremony.

India is a key priority for the Group. This investment emphasises the brand’s long term vision to offer its customers and dealers a wide range of products progressively introduced and well adapted to the market. Peugeot will strengthen its identity and its “MOTION&EMOTION” signature while launching a carefully targeted sets of models which are adapted to Indian market needs and tastes. Peugeot will be present at the Delhi Auto Expo taking place in January 2012.

PSA Peugeot Citroën Group is Europe’s second largest car manufacturer and the leader in the European LCV market with sales and revenue of more than €56.1 billion and over 205 000 employees in 2010. Over the first half of the year, Peugeot sales outside Europe strongly increased especially in Asia (+18%), Russia (+58%) and Latin America (+19%). With increasing sales in all markets both in 2010 (2 142 000 vehicles) and for the first half of 2011 (1 091 000 vehicles), Peugeot has achieved historical record sales, despite adverse global economic conditions.

Last Updated ( Friday, 02 September 2011 )
 
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