Peugeot likely to set up plant near Chennai

Chennai: PSA Peugeot Citroen, the French automobile manufacturer, is likely to set up a Rs 4,000-crore manufacturing facility close to Chennai.

The company is to establish a manufacturing unit with the capacity to produce three lakh cars annually to cater to the domestic and export markets. The Indian company will be a 100 per cent subsidiary of the French parent company, which is the sixth largest automobile company in the world and the second largest European automobile major. It has selected a site near Sriperumbudur, about 45 km to the west of Chennai.

The company hopes to set up a 400-acre facility but the actual extent of land to be allocated is yet to be announced. Including the project by PSA Peugeot, annual production in the vicinity of Chennai is set to grow to more than 1.5 million units a year.