The company, which is looking at India again after an unsuccessful stint, when it partnered Premier Automobiles, is more cautious this time though.
NEW DELHI: French major PSA Peugeot Citroen is carrying out a “strategic assessment” of the Indian market. The company, which is looking at India again after an unsuccessful stint in the mid nineties when it partnered Premier Automobiles, is more cautious this time though.
It has formed a small team to conduct this assessment and this team is reporting directly to the board of directors in Paris.
To begin with, French major is opening purchase office in India which will source components for its global operations.
While names of component suppliers Peugeot is talking to —- such as Argentum Motors, Bharat Forge and Amtek Auto —- for a possible sourcing alliance are doing the rounds, there is no confirmation on the exact companies PSA Group is in talks with.
Later, the company may even decide to rope in a strategic partner for entering the Indian passenger car market. Here again, sources tell us that PSA has been in talks with many well-known Indian companies but the discussions are still at a preliminary stage.
A PSA Group spokesperson told DNA Money from Paris “Yes, a strategic assessment is underway for India and we are opening a purchase office here soon. We are meeting several Indian companies as part of this assessment process.”
He said that while talking of the company’s strategy till 2010, the Peugeot Group CEO has already mentioned South America, China and Eastern Europe as the focus markets. “For India and Mexico, all he has talked about is carrying out a strategic assessment. We have no plans to enter India till 2010”.
This isn’t the first time the French major is contemplating a re-entry into India. Some four years ago, group company Citroen had initiated a study to start CBU operations from India but then decided to abandon such plans.
PSA’s three-year stint in India with Premier was marked by labour trouble which lead to a plant lockout and a showdown with its Indian partner that required the intervention of the court. No wonder the French major is cautious this time around.
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