Gandhinagar, 1 September 2011

On auspicious day of Ganesh Chaturthi, France’s major car manufacturer PSA Peugeot Citroen today signed Rs 4000 crore MoU with the Government of Gujarat to setup its car manufacturing plant in Sanand.

The car plant will come over 584-acre land. Peugeot will produce 1,65,000 cars per year of which 25% cars will be exported. Peugeot will also set up engine and gear box plant.

Peugeot will also set up international level skill enhancement centre i public private partnership mode.

Peugeot will roll out its first car from Sanand unit in 2014.

The plant will provide direct employment to 5,000 persons and indirect employment to around 25,000 people.

The land allotted to Peugeot is a part of the 2,251 acres Anand Agriculture University land(till October 2008). About 1,100 acre land of same university was given to Tata Motors for Nano car plant. Another 400 acre land was allocated to Ford Motors.

Welcoming Peugeot’s entry in the development of the State, Gujarat Chief Minister expressed the confidence that Gujarat is moving towards becoming a global automobile manufacturing hub. There are very few locations in the world which have major and renowned infrastructure for global trade. This showed that Gujarat had emerged in various sectors apart from a leading investment destination, he added.

Shri Narendra Modi also said that Sanand is also emerging as a major hub for manufacturing and export of automobile parts.

GoG/GIDC & PCA will set up an international level Automotive Skill Development Institute in PPP mode.

The fully integrated manufacturing unit, the first one in India, will encompass a cutting edge vehicle manufacturing facility integrating stamping, body paint and assembly operations with an initial capacity of 165 000 vehicles per year. Additionally, an engine and gearbox plant using the latest and most advanced technologies, which the Peugeot Group is reputed for, will help constitute a full-fledged modern industrial automotive facility.GIDC has reserved another 25-acre land for ancillary industry. PCA envisages exporting 25 per cent of the production, paving the way for Gujarat emerging as an automobile export hub.

The construction near Sanand is scheduled to begin this year end and commissioned by end of 2013.

The Agreements were signed by Gujarat’s Principal Secretary for Industry Mr. Maheshwar Sahu and Vice President of Emerging Market Programs & India of Peugeot Citroen Automobiles, Mr. Frédéric Fabre.

“We are proud to announce this new milestone in Peugeot’s continued global expansion and to have chosen to grow our Indian roots in the State of Gujarat. We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020. Gujarat offers a proactive business environment, excellent infrastructure and is geographically well-positioned to cater to passenger car markets across India” Said Chairman of Managing Board of PCA, Mr.Philippe Varin. In his address, Hon’ble CM assured all support to PCA for the fast track implementation of the Project.

The trend supports the efforts of Gujarat to become a Global Automobile Manufacturing Hub.