Peugeot which is known for its Padmini 309 in mid 90’s plans a re-entry into Indian market again. Peugeot Citroen is negotiating with Hero Group for a possible alliance for passenger cars. Peugeot is also in talks with Argentum Motors – promoted by former Hyundai President, BVR Subbu for a global components sourcing JV. Peugeot might come to a conclusion by the end of 2008. Peugeot had entered India in 1995 through a joint venture — PAL-Peugeot Motors Limited — with the Bombay-based Premier Automobiles Limited (known for Padmini) for producing its famed Peugeot 309 cars. The manufacturing unit for the cars was set up in Kalyan, Maharashtra and Peugeot controlled a 32 per cent stake in the venture. The diesel version of Maruti Suzuki’s Zen used peugoet’s engine. However, owing to difference between the partners and labour unrest peugeot pulled out of the venture in 1998..