French car maker Peugeot is paving way to enter the Indian automobile market. As one of the first steps, the carmaker would participate in the Auto Expo show in January 2012.
Peugeot hasn’t yet shortlisted the array of cars it would display at the Auto Show, but it is expected to showcase the new 508 sedan. This model will be competing with cars like VW Passat and will be assembled at the company’s upcoming 4,000-acre facility at Sanand, Gujarat. The Rs. 4,000 crore plant will have an initial capacity of 1,70,000 cars per annum.
The company will import cars into India before the company’s plant rolls out its first car in 2014. Peugeot will also be working on building its dealership network across the country in the next two years. Speaking to the Business Standard on the sidelines of the Frankfurt Motor Show 2011, Mr. Marc Bocque, World Press and External Relations Manager for Peugeot, stated that the company will be following a top-down strategy for India. The company after 508 will launch a C-segment car followed by a B+ model in India.
The company will set up an engine and gearbox plant at Sanand to facilitate the localization of 70-80 per cent of its models. Choosing not to elaborate on the timelines and specifications of the models, Mr. Bocque commented the models would be totally new and would be developed specifically for India.