French automaker Peugeot has voted in favour of Gujarat for setting up its manufacturing unit instead of Tamil Nadu or Andhra Pradesh. The company on September 1, 2011 will be signing a formal memorandum of understanding (MoU) with the government of Gujarat.
Tamil Nadu and Andhra Pradesh were also in the race to offer land to Peugeot, but the automaker chose Gujarat over these two states for its second venture in India. Peugeot is expected to set up its plant in Sanand, which also has the Tata Motors’ Nano manufacturing unit and Ford’s upcoming second manufacturing unit in India.
The company plans to invest Rs. 4,000 to Rs. 5,000 crore for setting up its manufacturing unit, which will have an annual capacity of 3,00,000 cars. The first model that Peugeot will launch in India will be the 508 Luxury Sedan followed suit by the 207 Hatchback.
According to the sources in the industry, Peugeot has zeroed in on Sanand as the area is fast developing as an automobile manufacturing hub. The officials however refused to give any details on the benefits and perks which the state government will provide to the automaker.
PSA Peugeot Citroen is the second largest automaker in Europe and the sixth largest in the world.
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