French auto company Peugeot-Citreon is all set to enter India, possibly in a joint venture with the UK-based Caparo Group, which already has an Indian subsidiary. Peugeot will be re-entering India 11 years after its JV with Premier Auto ended. It is looking at an initial production capacity of 6,000 units, which can be scaled up later.

Caparo India – an auto component maker – has huge reserves of land under it, something which seems to have worked in its favour. Officials at Caparo India, however, refused to confirm the deal with the French company.

Peugeot is planning to launch its range of vehicles in India in 2012. It is not yet clear whether Peugeot or Citreon cars will be launched first. In other markets where the JV operates, Peugeot is promoted as a mainstream brand, while top-end vehicles come from Citreon’s stable. The company is expected to launch cars with prices ranging from Rs 5 lakh to Rs 10 lakh.

Courtesy: www.driveinside.com