The French perfume is to be still alive with Peugeot all set to make its re-entry into the Indian market. The company has been in extinct for more than 20 years. Peugeot is looking for the best options in locating its plant, possibly in Tamilnadu since the company has been undergoing a critical phase in the declining European market. The steps are almost asserted by the officials of the Government of Tamilnadu with discussions going on between them. Specific details like the volume of amount, area of the plant are not immediately available, except the one that Peugeot is seeking a plant in which assembling of components may take place. It is not sure whether Peugeot is thinking of making a whole new factory. Already Renault-Nissan JV has a plant in Chennai thereby making Peugeot as the second French car maker to install a unit in Tamilnadu.
Further, Chennai surrounding has other top players like Ford, Mitsubishi, BMW, Hyundai. The net volume of car production from these companies is 10.80 lakh units and the official indication from the cabinet level indicated that the volume will increase to 12.8 lakh units along with 3.5 commercial vehicles. The statistics reveal the production capacity of the units @ 3 cars per minute and each commercial vehicle @75 seconds. Tamilnadu capital is preferred by the car makers for its eco-friendly surrounding, easy availability of components and excellent manpower.