Almost a decade after Peugeot made an unhappy exit from the Indian automobile market, it is readying to try its luck here again. As per industry insiders, there is high possibility of the e56-billion PSA Peugeot Citroen coming to India with a range of small cars and mid-segment sedans soon. Earlier, this second biggest car maker of Europe has to exit because of differences with their Indian partner, the Doshis. At present, the company is learnt to be studying the 1.4 million Indian passenger vehicle market.

 

In fact, a four-member team belonging to the PSA Peugeot Citroen has been looking at options in India and have even held meetings with automobile bodies such as the Society of Indian Automobile Manufactures (SIAM), Automotive Component Manufacturers Association of India (ACMA) and numerous component makers from south India. The report that this team prepares on its India plan will be presented before the company board in Paris.

 

The PSA Peugeot Citroen holds a 5.2 per cent share of the international automobile market, whereas in Europe its market share is 14 per cent. The company officials admit that they find Indian market enticing and very vibrant, yet refrain from making any direct statement on its possible re-entry in the country. At present, the relationship between PSA Peugeot Citroen and India is limited to its sourcing components from here in small amounts.

 

The company will be present during the forthcoming Auto Expo to be held at New Delhi in January 2008, but they will not be showcasing any products. The reason behind their presence in the Auto Expo 2008 is that it will provide them a good opportunity to get an easy glimpse of the vibrant Indian automobile industry. The idea about PSA Peugeot Citroen penetrating India is also backed by the fact that it’s been very active in many emerging markets like South Africa, Iran, China, etc.