Although both Argentum Motors and Peugeot did not wish to comment on a specific deal, both companies admitted to holding talks with three or four players with regards to a joint venture.

This is Peugeot's second attempt to create a niche in the Indian automotive market. In 1995 , Peugeot had partnered with Premier Automobiles(PAL) and issues with labour and with their Indian partner had resulted in their closing shop and moving out of India. They are now in talks with a few Indian companies exploring the possibility of a global component sourcing venture.

Industry sources say that Argentum Motors could be Peugeot's choice of an Indian partner, as the company begins sale of components in the second quarter of 2008.