[sarthakgupta]

Peugeot returns to India through CK Birla venture

French carmaker PSA Group will announce a return to India this week through a manufacturing venture with New Delhi-based CK Birla Group, Les Echos reported on Monday.

The maker of Peugeot and Citroen cars, absent from the fast-growing Indian market since the late 1990s, has signed a joint venture deal with the family-owned conglomerate to include a Chennai assembly plant with current annual production capacity of 12,000 vehicles, the French daily newspaper said on its website.

I believe that the Chennai Plant mentioned above is the Hindustan Motor plant in Tiruvallur, being used by Mitsubishi Motors.

Source: Reuters

[arjab]

Originally Posted by sarthakgupta

Peugeot returns to India through CK Birla venture
I believe that the Chennai Plant mentioned above is the Hindustan Motor plant in Tiruvallur, being used by Mitsubishi Motors.

Source: Reuters

It would be unfair to comment and pass judgement without knowing the intricacies of the deal, but the problem is, in India, when the two words; "automotive" and "CK Birla Group" crops up it exactly does not convey an air of confidence of an agile, lithe, modern car company coming in with their latest products to try and sell to the discerning Indian customer.

The French Lion needs to be doubly careful as last time around its reputation was comprehensively besmirched by another "local partner" who had business profile, quite similar to the current potential partner.

Fine. We don't know yet: Maybe PSA are just renting out the factory floor in Tiruvalluvar, near Chennai. Maybe they will have full control of sales, distribution and after sales network, maybe the scales are tilted towards their side - and it had better be so if they want to succeed in our country.

The bottomline is, PSA should not allow an iota of slackness to creep into their Indian operations this time. They have a humongous task pending. The present customer profile is different. Purchasing power has increased, young car buyers nowadays are a widely travelled lot and know exactly what is being offered by a brand internationally and what is being offered in India - that is what is the gap - and they will judge the OEM on that basis. And customers nowadays don't mind paying a bit more for technology, quality and durability.

So, the Gauls should pause, think, look both ways, listen to their customer base and then sail their vessel in. Even if its a bit delayed it doesn't matter - but the correct approach, collaboration and products are absolutely sacrosanct - a non negotiable item.

Because, of late, the designs coming out of the leading French automakers are delicious. Even some years back people may have accused the French of losing their automotive mojo - but not anymore. The last couple of years have seen a tantalising array of cars rolling out France and they better capitulate on that in India.

And not try to enter the market with some rehashed version of an old model as a "temporary entry" strategy.

Am sure Asterix would agree

[volkman10]

With India, expected to become the world's third largest car market by 2020, can PSA ignore the Indian Auto Industry?

PSA rekindles make-in-India plan, likely to tie up with CK Birla Group .

According to a report in the French financial daily, Les Echos, the PSA Group has inked an alliance with the CK Birla Group to make a new entry into the Indian market. Specific details of the tie-up are likely to be given on Wednesday morning by Carlos Tavares, chairman, Groupe PSA. PSA, according to the French newspaper, has refused comment for the moment

Link

[i74js]

They should consider Tata (surplus capacity available at Gujarat) and GM (again surplus capacity available at Gujarat).

CK Birla would be a bad choice; more so labour issues are minimal in the state of Gujarat because of clear support from the Government to the Industry.

Chennai has an advantage (Detroit of India), yet in terms of vendor network Gujarat has shaped up really well and with marginal production of GM from Gujarat, the assembly lines are vacant and vendors are looking for business opportunities.

[santosh911]

Peugeot's plan to tie-up with C.K Birla is not such a bad move. All Peugeot needs is a plant and the old Lancer unit near Chennai is still an efficient and high-quality plant set up by the Japanese with an eye on the future. I am sure Peugeot will control everything in this venture. Carlos Tavares is said to be a control freak and won't allow any partner to call the shots

[shankar.balan]

Peugeot should just come in on their own. No point trying to come in with some halfway house partner who may let them down somewhere in the middle.

The Peugeots, Citroens of the world are superb cars. Engineered very well. Strong. Excellent engines. Great suspension. Well priced.

Work very well in the Southern European markets and are very popular as well as reliable in those vast tracts of untamed Africa as well.

If loaded well, with features and priced nicely, these cars would be absolutely perfect in every way for the Indian market.

That Peugeot 309GLD was one of the more comfy cars to drive and sit in, at the time when it was available in India. A friend of mine had one as late as 2002-2003 but which he sold about that time since it was getting a little long in the tooth at the time.

I would love to see these excellent cars back in the market. In terms of quality and finish etc, they can most definitely give the established players a run for their money!

[VeyronSuperSprt]

There are two car companies who seem to be getting everything wrong - Fiat and Peugeot.

Fiat can never come out with a model that's right for India.

And Peugeot will never learn how to set up operations in India - right now their potential partner makes ceiling fans, toasters and water heaters - an invitation to disaster.

But Peugeot has prior experience in disaster management in India - just exit a fine morning.

[GTO]

This has DISASTER written all over it.

Peugeot: Negative brand equity in India. When they land at an Indian airport, Peugeot executives will find a long list of people waiting for them - i.e. those who had booked the Peugeot 309 and were cheated of their booking money.

CK Birla Group: Hindustan Motors. Enough said. Not exactly the last word for excellence in the Indian car scene.

Products: I don't see anything in Peugeot's line-up that can stand out and create a place for itself in the Indian market.

Money: Peugeot isn't cash rich and has been reporting losses & job cuts. This isn't a manufacturer who can invest big bucks in India.

My advice to Peugeot - don't bother. You'll only be wasting your time.

Originally Posted by VeyronSuperSprt

But Peugeot has prior experience in disaster management in India - just exit a fine morning.

[ajmat]

Originally Posted by GTO

Peugeot: Negative brand equity in India. When they land at an Indian airport, Peugeot executives will find a long list of people waiting for them - i.e. those who had booked the Peugeot 309 and were cheated of their booking money.

CK Birla Group: Hindustan Motors. Enough said. Not exactly the last word for excellence in the Indian car scene.

Products: I don't see anything in Peugeot's line-up that can stand out and create a place for itself in the Indian market.

Well, Peugeot now make pretty good cars, the question is whether they price them well.

Using HM to assemble the cars is ok but they need to build up a dealership network, that is a major challenge. Tieing up with another brand will not work. Look what happened to Fiat -Tata

[GTO]

Originally Posted by ajmat

Peugeot now make pretty good cars

Peugeot had earlier taken my feedback on the 207. The car was lacklustre & boring, with not many redeeming qualities. Although it was a couple of years back, that car told me just how far the company is behind its peers:

the question is whether they price them well.

True. Something Europeans have always found challenging. I doubt a cash-strapped company will figure it out.

[volkman10]

PSA Group and CK Birla Group JV in India confirmed.

PSA Group signs two JVs with CK Birla Group to manufacture cars, engines

An initial investment in capital expenditure close to €100 million (Rs 700 crore) for vehicle and powertrain manufacturing in the State of Tamil Nadu has been allocated, PSA Group informed Paris Stock Exchange on Wednesday.

The PSA Group and the CK Birla Group have signed joint-venture agreements to produce and sell vehicles and components in India by 2020.

The ceremony of signature held today lays the foundation for a long-term partnership between the two Groups and represents a key milestone in the development of the PSA Group in India, a cornerstone of its strategic growth plan ‘Push to Pass’ growth strategy

Link

[RSR]

Although I haven't owned one myself (yet), I'm a big fan of French automobiles. It's true that French business acumen may not be the best out there, but French engineering skills are absolutely second to none!

According to Autocar Professional, there will be two separate joint ventures between PSA & CK Birla Group companies - one for manufacturing powertrains & the other for cars:

http://www.autocarpro.in/news-nation...onfirmed-23402

The powertrain JV will be a 50:50 one, while Peugeot-Citroën will hold a majority stake in the automobile JV. The latter allays most of my concerns about PSA getting dragged down by their pedestrian license raj era partner.

I eagerly look forward to seeing the lion logo on cars in India again. I wouldn't mind the double chevron logo of Citroën, either! The latter may actually be preferable in India, because of the earlier fiasco involving the Peugeot brandname (I don't think PSA will bring DS to India, at least not during the initial years).

[greenhorn]

I hope they actually do something this time, compared to the last two times

[DeKay]

I beg to differ with everyone skeptical.
The 208, is priced similarly to the i20 and the Polo in Europe. If they're able to bring a fairly loaded 208 over and price it smartly (which I'm sure they will, because no one's stupid enough to do so after having failed before, without being confident in their plan)
I see no reason why this should have problems attracting folks to showrooms.

Pictured here is the puretech model (base)





Source
http://www.team-bhp.com/forum/iipcache/158408.jpg

It's very easy to chaff the underdog, but remember, more products means more competition. I don't know about you but that sounds pretty good to me.

[ajmat]

Originally Posted by sgiitk

PSA wants to commit hara Kiri. Typing up with to Birlas. Mama Mia. I see trouble all over.

If they tie up for purely manufacturing, then I see no issue. You cannot complain about the Mitsubishi's or the Ford engines assembled by HM.

If HM are going to do the marketing, thr issues begin. HM has no network. All the good dealers have given up their HM/Mitsubishi franchises

Peugeot have introduced some worthy cars over the past 2-3 years. They should aim to match VW although they will not have the deep reserves to do so