A joint venture between the French car maker Peugeot and the UK-based component concern Caparo is shaping for the Indian affairs. The return of the dragon, after 11 years of extinct in India, is seen as a huge set up with an investment of Rs1500 crore for an initial production of 6000 units. Caparo’s fortune in this regard laid on its land bank, spread across the country, enabling Peugeot to refrain from any such task. The final outcome would be known in a couple or two weeks, said sources, amidst the disclaim from the Caparo India MD.
Peugeot is in plans to deliver its products in the country by 2012, comprising mid-sized and hatchbacks. The range between Peugeot and Citreon is yet to be decided, while the price range would be Rs5-6 lakh and Rs8-10 lakh. It is, however, believed that Peugeot would fill in the mainstream with Citreon favoring the top-end segment, as existing in many countries. The JV has been in the air for a long time and the officials from the companies had talks with the government of Andhra Pradesh for a Greenfield project.
Peugeot is coming back to India after 11 years as its tie with Premier Padmini suffered a jolt following the rejection of 309 model by the public. Peugeot-Citreon JV has been striving to gain momentum in the car segment with the series of brands 407, 206, 308, C4 and C5. Caparo India is an Indian business firm for the UK based Caparo Group involving in total solutions for automotive systems, assemblies, advanced composites, modules and components. This is the first attempt for Caparo in car manufacturing following the technical agreement made in 2008.