Gujarat is really busy attracting FDI from Automobile Sector this year! Just a month back, in July Ford had announced setting up a manufacturing plant 50kms from Sanand, Gujarat. Then it was Maruti Suzuki, and now it is PSA Peugeot Citroën. The firm was looking upon finding a feasible place for its manufacturing plant in India from a couple of months back and Gujarat is the ultimatum it has found.
Peugeot signed Memorandum of Understanding (MoU) with Gujarat government on Thursday of investment of INR 4000 crores. Sources close to the firm says the production is expected to begin by the year 2014-2015. “The project cost of Peugeot is more than Rs 4,000 crore, which means the company would be investing this much money, till the completion of the project. This will definitely boost the FDI investment in the state,” said the official. Taking both of these figures together, we can say that the total amount of investment will be nearby INR 8,000 Crore.
Peugeot will be re-entering India after a decade. Previously Peugeot had tied-up with Premier Automobiles Ltd (PAL) . But this time Peugeot is coming here all alone and we expect it to give heat to all other automobile firms present here, as this big investment surely dominates that Peugeot won’t back-out this time about heavily localizing and thus pricing their products competitively. Already the company does have class leading quality products, so bringing the quality and attractive pricing together, yes this does seem quite a big success for the firm.
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