French car maker Peugeot is strategizing is entry into the Indian market by launching a premium sedan which will compete with Volkswagen’s Passat. The car maker is planning to launch Peugeot 508 premium sedan in India by the end of 2012. The price for the new car is expected to lie between Rs. 20,00,000 and Rs. 25,00,000. Peugeot, which was once another international player in the Indian automotive market, had to make an exit from India after it bore repeated losses. Thus, Peugeot wants to first establish itself as a premium brand in India by introducing around 1,900 units a year, before moving onto the volume generating compact hatchback segment. Volkswagen too, back in 2007, had adopted a similar strategy in India with the launch of the Passat.
According to an industry source, the company is adopting a “top-down strategy” for the Indian market. After its exit from India 15 years ago in 1997, the company wants to play it safe this time. The auto maker is also working towards setting up its manufacturing facility in the country and after a detailed study of the Indian automotive market the company is currently in talks with several states to decide upon a location to set up its manufacturing unit.
Peugeot is also eyeing a launch in the premium hatchback segment in India. According to the sources, the company will enter the segment where models such as Maruti Suzuki Swift, Ritz, Nissan Micra, VW Polo and Hyundai i20 are present. Peugeot is planning to enter this segment with its models such as Peugeot 107, 206 and 207.
