French automobile manufacturer PSA Peugeot Citroen is planning to make its way to India. Reports suggest that Peugot is currently in talks with Moreover, the two companies may also share their engine technologies. Tata’s Sanand plant in Gujarat will make cars for the French giant if things work out between the duo, reported The Economic Times. However, the news hasn’t been confirmed by the involved companies yet.
Official sources told the business daily that PSA is looking for a tie-up with a reputed local carmaker that has its own product, popular brand recall and spare parts distribution reach. This clearly hints at Tata Motor’s Sanand plant, which has ample capacity to meet the French automaker’s requirements.
The PSA Group, however, didn’t respond to an email seeking comment while a Tata Motors spokeswoman said that her company doesn't comment on future product plans, capacity expansion or utilisation.
The internal sources who do not want to be named said that Emmanuel Delay, head of India Pacific Operation at the PSA Group, is steering discussions with senior executives of Tata Motors, including president and head of product engineering Tim Leverton and chairman Cyrus Mistry.
Delay recently visited Bombay House, the Tata headquarters in Mumbai, to discuss the contours of a deal. Initial discussions were held between the two at the recent Frankfurt show and Tavares is understood to have given a clear mandate to Delay to fast track the India plans, they said.
PSA held talks with other car makers including Mahindra & Mahindra, General Motors as well as Hindustan Motors, but Tata Motors is likely to be the main contender.
As part of wider discussions, even the possibility of PSA sharing the high-tech DW10 2-litre diesel engine with Tata Motors-owned
PSA had hired a consultant to chart its India comeback plan. Its proposals are likely to be submitted to Tavares before the end of 2015.
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