Peugeot recce on three Andhra Pradesh sites for car plant

Despite three failed attempts, the Andhra Pradesh government hasn’t given up on its automobile dreams for the state.

The government, which had earlier wooed Proton of Malaysia, Volkswagen of Germany and was also in the race to attract Tata Motors’ Nano project, now has its eyes set on French automobile major Peugeot.

Though the proposal is still at a nascent stage, the state is doing everything to convince Peugeot to set up shop.

Sources familiar with the development said the state is willing to offer about 800 acres for Peugeot’s proposed project.

The company is expected to invest about Rs 1,500 crore and manufacture low-cost cars for India and other similar geographies. Peugeot and Citroen brands could be manufactured from the same facility.

A Peugeot team has already done initial survey of three locations. The government is keen on getting the company to set up its unit at Shamshabad on the outskirts of Hyderabad, but the team has also surveyed locations in Nellore and Visakhapatnam.

Sources said the team has shown more interest in Nellore owing to its proximity to Chennai.

“The state still does not have the ancillaries set-up. Chennai has that advantage. So, setting up of a unit in Nellore would be a win-win situation for Peugeot and the state,” said a source.