PSA Peugeot Citroen,the France based automobile manufacturer plans to set up a manufacturing plant at Sriperumbudur near Chennai by investing an amount of Rs.4,000 crores.The plant will have an initial production capacity of three lakh cars per year.
The company’s official release said that PSA has proposed to establish this Indian project as a 100 per cent subsidiary of the parent company. After evaluating sites in various states,PSA has selected a site near Sriperumbudur, in Tamil Nadu.
It also said that headquartered in Paris,PSA is the second largest automaker in Europe and is ranked as the sixth largest automobile manufacturer globally.In 2010, PSA had reported a sales turnover of USD 67.30 billion (Rs 3.09 lakh crores).
It seems that the company would provide direct and indirect employment to 20,000 people at the facility, besides also attracting a large number of auto-component manufacturers from France.
PSA has been choosing for locations to set up its plant and had shortlisted sites in Andhra Pradesh (Sri City in Tada) and TamilNadu. With this proposed investment,Chennai is set to become one of the largest automobile manufacturing hubs in the world.