French newspaper Les Echos, recently reported that the automobile manufacturer PSA Group, will make an announcement this week stating that it will return to India in a venture with the CK Birla Group. The PSA Group is the parent company of Peugeot and Citroen, while the CK Birla Group is currently in a venture with Hindustan Motors and Mitsubishi in India. Reports suggest that the venture between the two parties include plans to set up an assembly plant in Chennai with a current annual production capacity of 12,000 units. However, a PSA spokesperson had refused to comment on the report.
The PSA Group hasnâ€™t set foot on Indian soil since the late 1990s, when it hastily packed up shop and left. While it did announce a few years back that it would make its way back to India, the company backtracked on its plans, stating that it didnâ€™t have sufficient funds. Last year, the company was looking to enter India through a venture with Tata Motors, but that deal seems to have fallen through. We are unsure about how the PSA Group has managed to raise the necessary funds, but weâ€™ll have to wait till tomorrowâ€™s press conference where Carlos Tavares, chairman of the PSA GroupÂ will announce more details.