American auto major General Motors and French car manufacturer PSA Peugeot Citroen have agreed to form a global alliance, the effects of which will also be seen in the Indian auto industry. PSA Peugeot Citroen may use the General Motor India’s manufacturing facility at Halol (Gujarat) for production of small and mid-size sedans in India. As part of the alliance, the two companies are also discussing the viability of sharing car platforms for the small and medium size sedan car models at the Halol facility.
PSA Peugeot Citroen had plans to set up manufacturing base in India in 2011. A financial crunch as a result of low sales in its domestic market in France compelled the automaker to reconsider its plans for India. The company had put on hold any major investment in the Indian auto industry.
The company is now planning to enter the Indian car market with the help of its business ally General Motors and will be sharing with it the Halol manufacturing facility for the production of small and medium sized sedan cars.
