French car maker Peugeot will set up a 4,000-crore facility at Sanand in Gujarat. The place which is the home to the Tata Motors Nano. Peugeot will set-up its plant close to Ford Motor’s upcoming facility in Sanand, 40 km from Ahmedabad.
Peugeot will launch cars in the B,C and D segment in India.
The cars were recently caught testing in India at various locations in India which included the 508 sedan and 207 hatch back.
At an initial capacity of 165,000 vehicles a year, the plant is slated to be commissioned by 2014 and can be expanded to 340,000 units in phases.
Peugeot is Europe’s second largest car manufacturer and the leader in the European light commercial vehicle market. Its Sanand facility would directly generate up to 5,000 jobs and indirect employment for another 25,000 people.