Under the framework of this agreement, Peugeot plans to invest 4,000 crores (approximately 650M€) on a 600 acre site in the heart of the rapidly developing Sanand automotive cluster in Western India. Peugeot will build a cutting edge vehicle manufacturing facility integrating body paint and assembly operations with an initial capacity of 165 000 vehicles per year with options for further expansion. Additionally, an engine and gearbox plant using the latest and most advanced power train technologies, which the Group is reputed for, will help constitute a fully fledged modern industrial automotive facility. This investment will directly add up to 5,000 new jobs to the automobile hub and also create further economic and employment opportunities through an extensive supplier park adjacent to the site to provide the company with necessary parts and services. The first locally produced Peugeot car is expected in 2014.
On the auspicious occasion of the Ganesh Chaturthi, The Honourable Chief Minister of Gujarat, Shri Narenda Modi, and Mr. Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, presided over a ceremony to mark the signature of a SSA between Peugeot and the State of Gujarat.