Peugeot Could Partner Lotte With $5 Billion Investment In India

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Lotte could invest up to $5 billion in India; PSA to pump in $1.2 billion for new manufacturing facility and engine plant

PSA is gearing up to launch its Peugeot brand in India that will mark the French auto major’s reintroduction here. For that, PSA has already tied up with CK Birla Group in India and formed a new company called PSA-AVTEC with 50:50 stakes. The PSA-AVTEC is currently building the engine plant near Hosur in Karnataka. Now, the French automobile group is also discussing the possibility of partnership with South Korean conglomerate Lotte to make joint investment in domestic market.

PSA is investing a total of $1.2 billion for the new car manufacturing facility and engine plant. Apart from that, Lotte too is likely to pump in up to $5 billion in the country. The Korean company plans to develop urban real estate here. So far, these investments are believed to be boosting the ambitious ‘Make In India’ campaign.

 

Also read: PSA Begins Work For Building Powertrain Plant In Hosur

However, it is not clear, if Lotte will make any investment in PSA’s automotive venture here. Speaking about the Peugeot’s reentry here, it will launch four models in the initial phase. These include two hatchbacks, the 208 and 308, and two SUVs 2008 and 3008.

The Peugeot 3008 could be the first product from the brand to arrive here. Initially, all these cars will arrive here as CKD units and assemble locally. At later stage, PSA is expected to manufacture the models here, which will help the brand to sell its car at competitive pricing. We can assume, the French automaker will display its India-bound cars at the upcoming 2018 New Delhi Auto Expo.

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Also read: Peugeot 3008 SUV To Be PSA’s First Product In India

Meanwhile PSA has purchased the Opel and Vauxhall brands from General Motors. If Peugeot gets a good response in domestic market, we might see the arrival of products from these two brands as well. However, PSA is yet to make any such comment and this is just our speculation.