By IANS,
Chennai : Europe’s second largest automobile maker PSA Peugeot Citroen (Peugeot) has decided to set up an integrated automobile project near the Tamil Nadu state capital at an outlay of Rs.4,000 crore to roll out 300,000 cars per annum.
Senior officials of the France-based $67.30 billion-turnover Peugeot met Tamil Nadu Chief Minister J. Jayalalithaa Wednesday to discuss the project.
After evaluating sites in various states, Peugeot – the sixth largest auto-maker in the world – has selected a site near Sriperumbudur near here, according to a statement issued here by the state government.
The French auto major is eager to establish a car manufacturing facility with an initial capacity of 300,000 cars per annum to supply to Indian and overseas markets.
The company has proposed establishing the Indian operations as its 100 percent subsidiary.
Peugeot officials requested Jayalalithaa for a support-package including land.
Jayalalithaa thanked the Peugeot team for selecting Tamil Nadu and assured them of her government’s support for expeditious implementation of the car project.
The project, when operational, is expected to provide direct employment to about 5,000 people and indirect employment to another 15,000.
The project is also expected to bring in large number of French auto component makers triggering a multiplier benefit to the economy.
The Peugeot delegation included Gregoire Olivier, CEO of Asian Operations for Peugeot, China, Frederic Fabre, managing director of Peugeot India project and Jitesh Gadhia, senior managing director, Blackstone.
Minister for Industries S.P. Velumani and senior officials were also present at the meeting.
Once the project kickstarts, Peugeot will be one more global car major and second French company after Renault to set up operations in Tamil Nadu.
Renault and Japanese auto maker Nissan Motor Company’s joint venture plant has been set up at Oragadam near here to manufacture cars for both the companies.
The other global car makers who have their car manufacturing plants in Tamil Nadu are Mitsubishi of Japan, Hyundai Motor of South Korea and Ford Motor Company of the US.
Hyundai Motor also has plans to set up a diesel engine plant near here.