Rumour: Peugeot to return to India with Tata partnership

Earlier this year, we had reported that Peugeot is mulling an entry into the Indian automobile market. Now, media reports indicate that the French company is in talks with Tata Motors to form a partnership.

If the talks are successful, Peugeot cars could be rolled out of the Tata Motors plant in Sanand. The plant was originally built to produce the Nano. However, with the Nano not selling in the numbers that Tata Motors would have liked, the facility is being used to manufacture other cars such as the upcoming Kite hatchback.

The cars that Peugeot is believed to be considering for India include the 208 hatchback, 308 sedan and 2008 crossover. The talks between the two companies began at the 2015 Frankfurt Motor Show. Now, the venue has 

Peugeot and Tata Motors could even share engine technology and platforms in the future. PSA could also share the DW10 2-litre diesel engine with Jaguar Land Rover, which is owned by Tata Motors.

The company's first innings in the country came as joint venture with Premier Automobiles. This collaboration ended in 2001 and Peugeot pulled out of the country altogether. In 2011, the company returned to India and decided to set up a plant at Sanand in the state of Gujarat. However, it called off these plans due to financial troubles at home.

Peugeot has also had talks with other manufacturers such as General Motors, Hindustan Motors and Mahindra.

Source: ET Auto