Peugeot, Gujarat govt. sign agreement

On the auspicious occasion of the Ganesh Chaturthi Chief Minister of Gujarat Narenda Modi, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, presided over a ceremony to mark the signature of a SSA between Peugeot and the State of Gujarat. Under the framework of this agreement, Peugeot plans to invest Rs 4,000 crores (approximately Euros 650 million) on a 600 acre site in the heart of the rapidly developing Sanand automotive cluster in western India. Peugeot will build a cutting edge vehicle manufacturing facility integrating body paint and assembly operations with an initial capacity of 170,000 vehicles per year with options for further expansion. Additionally, an engine and gearbox plant using the latest and most advanced power train technologies, which the group is reputed for, will help constitute a fully fledged modern industrial automotive facility. This investment will directly add up to 5,000 new jobs to the automobile hub and also create further economic and employment opportunities through an extensive supplier park adjacent to the site to provide the company with necessary parts and services. The first locally produced Peugeot car is expected in 2014. The intention to create an Automotive Skills Development Institute (ASDI) in partnership with the Government of Gujarat has also been announced. According to a company release, the investment emphasises the brand’s long term vision to offer its customers and dealers a wide range of products progressively introduced and well adapted to the market. Peugeot will strengthen its identity and its “Motion&Emotion” signature while launching a carefully targeted set of models which are adapted to Indian market needs and tastes. Peugeot will be present at the Delhi Auto Expo taking place in January 2012. Peugeot is the leading French car brand in the world and belongs to PSA Peugeot Citroën Group, which is Europe’s second largest car manufacturer and the leader in the European LCV market with sales and revenue of more than €56.1 billion and over 205 000 employees in 2010. . Over the first half of the year, Peugeot sales outside Europe strongly increased especially in Asia (+18%), Russia (+58%) and Latin America (+19%).