Groupe PSA postpones production in India by 1 year

According to a media report, French carmaker Groupe PSA has postponed its full-scale production plans by a year as it is still working on achieving its product and cost objectives.

In November 2017, PSA-AVTEC began construction of a new powertrain manufacturing facility in Hosur, Tamil Nadu. It will have an initial capacity of 2,00,000 units per year. Production is now expected to commence in April 2021 instead of April 2020. However, exports of gearboxes and engines are likely to begin in 2019-20.

While its Smart Car strategy for emerging markets like India may have got delayed, Groupe PSA might opt for a top-down approach by importing completely built units (CBUs) of Citroen SUVs as a brand building exercise by 2019-20. 

The carmaker first forayed into the Indian market post globalisation and exited in the mid-90s. Fresh plans were made in 2010 to re-enter the market, only to be abandoned in 2012.

Source: Economic Times