Europe’s second largest car maker PSA Peugeot Citroën has put its plan of India Debut on hold due to its financial difficulties in the European Markets. Initially the company had announced that it will invest €650 Million (Rs. 4,000 Crores) but later the Peugeot-GM alliance made them think that they could share GM’s facilities to produce or assemble their cars. Last year, a few of their cars were caught testing in Pune as well. But, GM Denied sharing their plants with Peugeot. However, Peugeot said they will ‘scrap the plan’.
A mail from a Peugeot Spokesperson says: “Taking into account the European market crisis, which hit the group’s cash flow and profitability significantly, PSA Peugeot Citroën announced its intention to reschedule its project in India and its construction operations at the Sanand production facility, during the announcement of the company’s financial results on February 15”.
“However, the Indian market remains strategic for PSA Peugeot Citroën, fitting well into the mid-term international development of the brand. The timing of the introduction of Peugeot is currently being revised in line with the rescheduling of the project”, the mail also added.
News Source: Business Standard