Few days back, we have brought up the news about Peugeot being in discussion with its new global alliance partner, GM to share the capacity for its Indian project. However, as Autocar reports that Timothy E. Lee, GM’s president of international operations has said that GM’s India operations don’t have spare capacity to share with Peugeot.
In January Peugeot had announced to put on hold the Rs 4,500-crore investment plan for a new plant in Sanand, Gujarat. As a better option Peugeot thought of sharing capacity with its alliance partner but with this news Peugeot has to rethink on its Indian Project.
GM has a total capacity of 1,40,000 units at its Talegaon plant where the Spark and Beat are currently produced. Looking at the sales figure of these hatchbacks for last year which was around 79,000 units GM will have a crunch in its capacity if the sales figures are the same this year.
GM is planning to produce the soon to be launched Sail hatch, Sail saloon and Enjoy MPV in Talegaon plant only. Keeping sales figures of Spark and Beat in mind the capacity for these new cars will remain only 61,000 units which gets tight and not viable for GM to share space with Peugeot. This might come as a bad news for Peugeot and they will be needed to restrategize their plans for India.