PSA Peugeot Citroen Officials Meet Narendra Modi

Published: Tuesday, July 5, 2011, 12:54 [IST]

Officials from PSA Peugeot Citroen, the French car major yesterday met Gujarat chief minister Narendra Modi in Gandhinagar on Thursday. This meeting has added to speculations over the French carmaker setting up its plant near Chennai in Tamil Nadu. There was an official confirmation from PSA about it investing Rs.4,000 crores in Sriperumbudur near Chennai, Tamil Nadu.

PSA Peugeot Citroen had short listed Tamil Nadu, Andhra Pradesh and Gujarat to build its plant in India. Company officials met Tamil Nadu chief minister J. Jayalalitha on Wednesday after which the company confirmed its investment in the state.

Officials from PSA Peugeot Citroen had earlier visited Gujarat and had even considered Sanand as a likely location for its plant. Gujarat is trying to become an auto hub after Tata Motors decided to move its Tata Nano plant from Singur to Sanand. India's largest carmaker Maruti Suzuki has also held talks with chief minister Narendra Modi over its plant to build a plant in Gujarat. All carmakers are seeking equal or even better better concessions that was offered to Tata Motors.

One can only wonder if PSA Peugeot Citroen is trying to get the best deal possible either from Gujarat or Tamil Nadu. Both are coastal states with well established port cities. Even if domestic sales do not reach expected levels, PSA Peugeot Citroen's plant can very easily become an export oriented plant.

Article Published On: Friday, July 1, 2011, 11:14 [IST]

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