French car-maker PSA Peugeot Citroen had big plans to enter India and setting-up a plant at Sanand Gujarat but unfortunately that will not come about as planned. Peugeot have surrendered their right to the property on which they were planning to invest Rs.4000 crores in order to set up a plant on a 600 acre area.
This decision had come in the light of worst ever financial crisis Peugeot is experiencing back at home and hence investing in a new venture does not fit into their plan at the moment. The company has already defaulted in payments to the Gujarat Government and though the land was offered to them at a reasonable price, the commitments could not be met on time due to which the deal has been called off.
Peugeot had plans to make India their export base for RHD markets of ASEAN countries and Australia, however company sources have confirmed that there are no such plans as on date and will probably be reviewed once again when financial situations improve or in the next four to five years.
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Source – Economic Times