Paris: French auto maker PSA Peugeot-Citroen said Thursday it plans to invest about €650 million to build a manufacturing facility at Sanand, the swiftly developing automotive cluster in the Indian state of Gujarat.
The company has said that it is aiming to have half of its vehicle sales outside Europe by 2015, compared to 38% at present, by ramping up production capacity in China, Russia and Latin America, and at this time India.
The latest complex will include a vehicle assembly plant with a paint shop. It will have a preliminary capacity of 170,000 vehicles annually with the possibility for later expansion. It will also manufacture engines and gearboxes using the newest power train technologies, said Peugeot-Citroen.
The company said that the site will generate 5,000 new jobs, creating further economic and employment opportunities through a wide supplier park adjacent to the site, which will offer the company with necessary parts and services. The first locally produced Peugeot car will roll off the assembly line in 2014.
Peugeot presently has no presence in India, one of the world’s most promising automobile markets. Before settling on Sanand, located 40 kilometers from the state capital Ahmedabad, the French company had also considered setting up its fresh Indian plant in Tamil Nadu or Andhra Pradesh.