French carmaker PSA Peugeot-Citroen has decided to set up its India plant at Sriperumbudur, on the outskirts of Chennai. The Rs 4,000 crore, 300,000 units per annum capacity plant will roll out a midsize saloon that is currently being developed at the carmaker’s Vigo plant in Spain, and will cater to both the domestic and international markets. With this, PSA joins global carmakers like Ford, BMW, Hyundai and Renault-Nissan to have Chennai as its manufacturing base for India.
The choice of location for Peugeot was between Andhra Pradesh and Tamil Nadu and what seems to have tipped the decision may have been the existence of a vibrant component supplier network, well-qualified talent pool and excellent port facilities. The company will provide direct and indirect employment to 20,000 people at the facility, besides attracting auto component manufacturers from France. Peugeot’s India operations are headed by M Frederic Fabre.