The French car manufacturer of old times, Peugeot is in a contemplation spirit to revisit India, barely after a long reel of 12 years. To be on the Indian soil in another three to six months, the company is taking stock of the global market especially Brazil, Russia, and China,(BRIC economies) before entering. PSA, as is known popularly, is all set to retrieve its presence this time without any flaw, said the company’s CEO Mr.Phillippe Varin. Earlier, it had to leave in an abrupt manner.
Peugeot and Citroen are doing good business in Europe but don’t want to take any risk amidst the global marketing strategies. The scrappage market is especially promising in Europe and has laid the path for the invasion towards the small car segment for which the Indian market seems to be more potential. Suzuki and Hyundai have proved this phenomenon of fuel-efficiency. PSA company views the growing swing in the markets of India and China for the global profit which can double the sourcing means. In all the company is not in a hurry to let the cat run and they are fully aware of various critical issues to be resolved with. PSA believes the credibility aspect for the brand name (in connection with the earlier business), the location of the unit and the business methodology. However, there are two contenders for the location – Andhra Pradesh and Tamilnadu- but given the situation of labor problems in MRF and Pricol, odds favour the AP.
Tamilnadu has the memoirs of the lock out in Kalyan plant and this could make PSA to have an afterthought. If at all the plan comes into effect, the initial mode will be a mix of CKD assembling, and import of cars to promote the brand and has to vie with all other major companies of the world, which are already in good knock in India. As an adhoc range and to combat the competition from Ford, Honda and Toyota the company has earmarked the compact car for the Indian car market.