Peugeot to make car to compete with Tata Nano!

Peugeot is exploring possibilities of manufacturing cars with its global partner General Motors (GM) in India. The first of its car will likely be a low cost car that will compete with the tata Nano.

Earlier, the company had scrapped its plans of investing €600 million (roughly Rs. 4,000 crore) for its Indian operations.

“We now have GM as a global partner and GM has factories (Halol, Gujarat) in India, so we’re obviously reviewing our plans from the top,” Gregoire Olivier, head of Asian operations, Peugeot, was quoted as saying by The Live Mint.  He added that there are a lot of other ways (for Peugeot) to enter India now that they don’t require the company to put €600 million on the table.

peugeot 508 sedan
Photo: The Peugeot 508 is an elegant and attractive looking car which may attract a lot of buyers

However, P. Balendran, Vice President, GM India has stated that currently there were no plans for GM and Peugeot to build cars together in India and that it’s too soon to say how (the GM-Peugeot alliance) will impact India and the Asia-Pacific region.

At the 2012 Delhi Auto Expo, Peugeot marked their presence by showcasing the 508 sedan, 3008 Crossover and the RCZ sports car.

The 508 luxury sedan is powered by a 2.2-litre turbo diesel engine that puts out 204 bhp of power and is mated to a 6-speed automatic transmission. The 3008 is a 5-seater crossover with a cab-forward design and a uniquely styled rear.

The 508 is expected to be brought to India as a direct import and may be priced in the range of Rs. 20 lakh – 25 lakh. It will compete with cars like the Honda Accord, Toyota Camry and the Nissan Teana. However, it is not yet clear whether the 3008 will hit the Indian market. Read more: Peugeot to showcase 508 luxury sedan at the 2012 Delhi Auto Expo

Earlier, in August 2011, CarToq had reported about test mules of the Peugeot 207 hatchback and the 508 sedan being spotted on the Mumbai-Pune expressway.

The 207 is Peugeot’s premium hatchback and if launched in India, would compete with the Maruti Suzuki Swift, Hyundai i20 etc. The 207 sold in international markets, measures 4,045 mm in length, 1972 mm in width and 1,472 mm in height.

Peugeot is expected to launch a hatchback (207), a premium sedan (508) and the 3008 MPV when it comes to India. However, after getting different statements from top officials of Peugeot and GM India, it is not yet clear whether and when Peugeot will actually commence its Indian operations.