Thursday, April 19, 2012
By Manoj Kumawat
Peugeot to start India operations from GM India's Halol facility
The French auto maker Peugeot is mulling over to build a plant in India, the company is apparently investing Rs. 4,500 crore over the project. Until the facility is under construction, the company will commence its operations at the GM India’s plant located in Halol in Gujarat. Peugeot of late seized its office in Mumbai in response to the slowdown in its native place France. Under the new pact formed between General Motors and Peugeot, both the companies will share platforms for small and mid-sized cars which also includes MPVs, crossovers and low emission engines too in order to reduce costs.
Peugeot has planned to launch a slew of cars in India; the company also gave a glimpse of its sedan Peugeot 508 which it plans to launch in the Indian auto market. Peugeot re-entered the domestic market after a gap of 10 years but could not taste success due to unfavourable conditions in its native market. With this tie up with General Motors, Peugeot eyes at rejuvenating its sales not just in India but in global front.
The VP of General Motors India, Mr. P Balendra stated that GM and PSA Peugeot Citroen pact is a significant alliance for General Motors and they expect a positive outcome from this tie up on global front and especially in European market. He further mentioned that the company is hoping to have a mutual benefit from this alliance globally, but it is too early to predict the impact of this tie up in Indian and Asian markets.