Peugeot’s First Model For India Will Rival Jeep Compass

Groupe PSA and the CK Birla Group has inaugurated a new Greenfield plant in Hosur, Tamil Nadu.

We informed you earlier that the French automaker, Peugeot will follow top-down product strategy for the Indian market. Groupe PSA and the CK Birla Group has inaugurated a new Greenfield plant in Hosur, Tamil Nadu. This plant will manufacture and supply engines for both domestic and international markets. The new manufacturing unit has a production capacity of 3 lakh transmissions and 2 lakh BSVI compliant engines.

The company is also planning to achieve higher localisation of parts, which will help to reduce cost. Coming back to the product strategy, the Groupe PSA will initially launch a 5-seater premium SUV. The new model is likely to be the Citroen C5 Aircross. This model will be brought to India via a CKD kid.

Peugeot will start manufacturing products locally from 2020-21. The company has also bought the iconic Ambassador nameplate. It is expected that the Peugeot could launch the retro-styled Ambassador, just like MINI from BMW. Previous media reports claim that the company is considering 3 smart city cars – a sub-4 meter SUV, a B-segment hatchback and a mid-sized sedan for the Indian market. Read – Peugeot Is Working On A Sub-4 Meter SUV For India

Coming back to the Citreon C5 Aircross, this SUV will challenge the likes of Jeep Compass, Hyundai Tucson and the upcoming Skoda Karoq. The company is planning to have 80-100 dealerships in India by 2021-22.

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