The PSA Group will return to India


The company French car continues to move forward in their goals gain presence in new markets. Last year it was confirmed the return of PSA both Iran and Tunisia, two markets with a high growth potential. The next stop on the “tour” of Carlos Tavares is India, according to a report in Les Echos.

according to the information unique to the French newspaper, Wednesday morning will be offered public details of an agreement between PSA and the group, CK Birla, the owners of Hindustan Motors. This is one of the manufacturers most veterans of India, and produced the well-known Ambassador for decades, until 2014.

PSA has not made comments to Les Echos

last April PSA presented its plan “Push to Pass”, which means “push to pass”. It is the second phase of the plan of Carlos Tavares -former number 2 of Renault – PSA gain ground, after the “Back to Race” (“return to race”). it Is planned that the sales to increase 50% by 2021, a very ambitious target for only five years. India is an interesting place to do business car and do volume.


Taxi, Hindustan Ambassador car in Calcutta – Photo: Ramakrishna Reddy And (Flickr) CC BY

Suffice it to consider that is a market of three million units per year, taking into account that a large part of the population lives very precarious. The indian subcontinent is the second most populous country of the Earth, and can take off in the same way that China did in its time. The car fleet can be renewed and grow, a chance for PES if you know to take positions.

India could double its market by the year 2020 and reach to 6 million units/year

According to Les Echos, PSA and Birla Group will form a joint venture, that is to say, a joint-venture. It will produce cars of Peugeot and/or Citroen in Chennai (also known as Madras), where there is a plant with 12,000 vehicles a year capacity that is currently ensamla vehicles of Mitsubishi. The japanese have been working with Birla Group since 2005.

Versus the saturation of the traditional markets, emerging countries are very interesting due to its growing middle class and car ownership is very aged. India is one of those markets, along with Russia, China and Brazil (in short, BRIC) arouse the interest of the manufacturers. Ford, Renault, Volkswagen and Suzuki already have a significant presence in that country, among others.


Advertising of the Peugeot 309 GLD for PAL-Peugeot

is Not the first time that PSA works in India

In 1994, Automobiles Peugeot signed an agreement with Premier Automobiles Limited (PAL) to produce the Peugeot 309 in Kalyan as of January 95. It formed a joint venture in which Peugeot, and PAL had 29% each, the rest of the company was a public capital. In that time, the 309 was a contemporary model to the one I had in France, although with some measures to economizarlo.

The 309 was sold in two finishes, GL and GLD, with two engines. You could choose between a 1.4 petrol (TU3 70 HP) and diesel 1.6 (TUD5 57 HP), both without turbo. Among the “luxuries” available was the air-conditioning, electric windows front (GLD), central locking with remote control, board with quartz clock, etc ..

To better withstand the rigor of those roads, 309 received more protections in the low-and relations fourth -, and fifth-reviewed.
It is estimated a production of 60,000 units for 1997, but not
it reached this figure. On the one hand, the model was still very expensive
for the indian citizen middle, and on the other hand, problems of
spare parts were common, as there are many pieces of source outdoor.


That adventure ended in 1997, confirmed the commercial failure of the 309 in that country. The French held that issue parked until 2011, when plans were announced to build a factory in India, specifically in Gujarat. It was an advertisement, ambitious, meant to invest € 650 million and start production in 2014. The capacity of the plant would reach 170,000 units per year.

, The executive board of then, Philippe Varin, stated that he hoped that India would be the third automobile market in the world in 2020. That prediction was overly optimistic, Japan continues to hold that position, behind China and the united States. The economic difficulties that started to have the PSA in 2012 left that option on the back burner sine die.

The situation of PSA is much better today, after a great wave of changes imposed by Carlos Tavares. Now the French group is in a position stronger to try again, in India, always and when do not forget the mistakes of the past. The intention is to make another carambola as that which is made in China, one of the main markets for PES today.