[mxx]

Originally Posted by Gooney

Indian automotive market is doing resonably well. We are zooming ahead in terms of percentage growth; but we are still very small in terms of absolute numbers. If I may put it, we are just teenagers compared to North American, West European and Japanese markets. But China is where the action is. China will define the future automotive scene.

True, Indian car market in a nascent one. But rather than being a handicap, this is actually a reason why manufacturers are coming in here now. No one came here for selling few 1000 units a month as they do now. Most of them are here for what the what the market will be maybe 10 years from now. As Audi India boss said "Indian market is where china was 15 yrs back". The growth rate in west is already flattening out. So, now the actual growth is in china. And after a point china flattens out, they can get volumes in India. That is why everyone is trying to crack the Indian market.


Back to the topic:
Peugout has a very uphill task over here. To make things worse they got a back reputation from their previous attempt. But still we have enough space here in this market, IF they play it smart.

[GTO]

The last time Peugeot came to India, they launched an outdated product. That's saying a lot after you consider that, in 1996, there were hardly any cars available at all!! Then, they goofed it up by defaulting on customer deposit refunds.

Second time around, I'm afraid things are not going to be as easy for Peugeot. For one, and as Steeroid posted, there'd be a line of people waiting at the airport with their deposit slips. Second, the market now is getting increasingly congested. Clearly Peugeot lost whatever early mover advantage it could have had, and will be hard-pressed to find a USP. What could be Peugeots USP? European car for a VFM tag? How are they going to find dealers, when entrepreneurs are unwilling to invest 20 crores in a complicated business model (i.e. dealerships)? Can they repair / restore the brand?

A JV with an established Indian player wouldn't be a bad idea at all. But hey, steer clear of PAL will ya?

[SILVERWOOD]

Originally Posted by GTO

Then, they goofed it up by defaulting on customer deposit refunds.

I didn't knew this part.How could a MNC do this.? Do they not require any kind of NOC from the govt and professional bodies before they wind up their shop and leave home.? I am sure many customers would have taken legal action against them.

[KiloAlpha]

PSA Peugeot Citroen has some really nice cars - the Citroens in their product portfolio are especially tasty!

They also make really nice small cars. Theoretically, strong product line-up for value conscious Indians. Theoretically, mind ...

For starters, could we please have the latest models? And then, just to see how Maruti reacts, introduce a reheated 106/Saxo at below M800 pricing?

[mpksuhas]

Originally Posted by SILVERWOOD

I didn't knew this part.How could a MNC do this.? Do they not require any kind of NOC from the govt and professional bodies before they wind up their shop and leave home.? I am sure many customers would have taken legal action against them.

Had read about this before too in another thread here. Well, regarding what Silverwood said this is a country from where someone escaped in with government back up after factory under him killed some 18K+ people due to toxin leak.

[pgsagar]

Originally Posted by zaks

My God, it's like every car manufacturer worth their salt have plans of setting up shop here. Wonder if they are all going by that great middle class hoax of 200 milliion?

Well said. I think they are over-estimating Indian market. Our is still primarily an MTH ( Maruti/Tata/Hyundai) market. At this rate, we may soon have too many cars and fewer takers. But when that happens, it is good for customer because the he will then truly be the king.

[avishar]

Well that certainly doesnt seem the case to me.Even though its still a MHT market,new cars which have been introduced in India are expanding the market,not eating into anyones sales.Also remember Maruti had a market share of almost 80% a decade ago,which is now just hovering at 50%.Although sales have increased 3 times for maruti.

[drsnt]

Originally Posted by ph03n!x

Am not sure about their modern cars - the 309 GL Petrol that my dad bought in '96 has a gem of an engine - carbureted though - and returns anything around 12 ~ 14 KMPL of mileage.

Apart from the service & spares problems we faced after they shut shop, the biggest problem is that the dashboard is kinda falling apart - and we are not getting a viable option to source a replacement!

remember reading about this problem by many owners.........quality issues?

[Comrade]

Source: The Hindu Business Line : Peugeot set for India entry with global small car

Peugeot set for India entry with global small car

French automaker will team up with Mitsubishi.

PSA and Mitsubishi would ideally look at using India as a global hub for the small car where exports could be contemplated to markets in Asia-Pacific or South Africa.

Murali Gopalan

Mumbai, June 19

PSA Peugeot Citroen is all set for an India comeback with a global small car which will be developed jointly with Mitsubishi of Japan. French daily Les Echos reported the news on Friday which was confirmed by a company spokesperson.

The small car has been targeted for China and Latin America — two markets which PSA has prioritised for 2010 — but could also find its way into Thailand and parts of the Asia-Pacific region.

The French carmaker's entry into India has been making the news from time to time largely from the viewpoint of locating a site which was always a toss-up between Tamil Nadu and Andhra Pradesh. It was among the earliest entrants to the country when the gates were thrown open to multinational investment but made an abrupt exit in end-1997. Since then, PSA was tipped to enter into an alliance with Tata Motors for the 307 but this project never saw the light of day. Over the last two to three years, news of its re-entry has been doing the rounds though the company has never made an official statement on the subject. The global small car is now a clear indication that PSA is finally looking beyond its traditional market in Europe where it is the second largest player after Volkswagen.

Smart move

With all the action now expected in the BRIC (Brazil, Russia, India and China) economies, the company clearly does not want to be left behind.

Parts of Europe have also become increasingly wobbly lately which gives global automakers little option but to look at Asia and Latin America as alternative growth engines.

The alliance with Mitsubishi, sources say, is ‘interesting' because the two companies were recently contemplating a cross-holding of equity which eventually did not happen. Despite that, they are keen on collaborating on the global small car with Mitsubishi expected to lead manage the project. Not so long ago, the Japanese company and Daimler were also planning an Asia car modelled on the Smart. All this was happening when Daimler had a sizable stake in Mitsubishi but once this was divested, the project was also given a quiet burial. Mitsubishi's India exposure is confined to a non-equity alliance with Hindustan Motors which rolls out a handful of models at a plant near Chennai.

It is now clear that PSA wants to get on with its India plans where the next big step would be to put a business model in place. Choosing a location is only one part of the story though it would still be a critical decision given that labour problems in its first innings here at the Kalyan facility led to closure of operations.

Once a site is in place, be it Tamil Nadu or Andhra Pradesh, PSA would be more inclined to go in for an operation which comprises a mix of direct imports and assembly of CKD (completely knocked down) kits. This is pretty much on the lines of what Volkswagen has done leading to the launch of the Polo compact car. PSA and Mitsubishi would ideally look at using India as a global hub for its small car where exports could be contemplated to markets in Asia-Pacific or South Africa.

The other task on hand is brand-building since the French company has often wondered how people will react to the possibility of a Peugeot comeback. “When it shut shop in November 1997, a whole lot of people suffered right from employees and dealers to financiers and suppliers. Though time is a great healer, this negative perception will constantly be an issue for Peugeot,” an industry executive said. Interestingly, Les Echos also reported that PSA is working on a sedan for emerging markets where production will happen in its Vigo facility in Spain. Whether this will be shipped to India as part of the initial CKD plans remains to be seen, sources say.

[Amartya]

Thanks for sharing this. If this does happen, it'll bode well for the Indian consumers. I used to think very highly of the 309 (specially the GLD version, which was better than the Escort sold back then) and was very disappointed with the way Peugeot did business in India. Although I now believe that PAL was the source of trouble (hope they rot in hell ), and would like to see them have another go.

This time though, people would tread with caution, and they need to be firmly behind their business for atleast 5 years before people take them seriously. One way to do this is to continue with Mitsubishi products (launch new ones), Mitsubishi has a decent reputation and rebadged Peugeots might be an option. Another option is to utilize Peugeot's diesel expertise.

As of now, this is a wait and watch thing, let's see how far this goes.

[aaggoswami]

A thread already exists :
http://www.team-bhp.com/forum/indian...ack-india.html

About Mitsubishi coming in through PSA, again they will have to set up a new network of dealers and service centers. What about HM-Mitsubishi then ?
But I believe that if Mitsubishi leaves HM, its good for Mitsubishi.

[crazycardude198]

Well I guess it was inevitable, it appears that Peugeot and Citroen have decided to penetrate the Indian market. Here is a list of cars that Peugeot might be interested in bringing.

Citroen

1)Citroen C-zero
Citroen C-Zero wallpaper # 01 of 61, Front Angle, MY 2011, 1280x960

2)C3 / C3 Picasso
Citroen C3 Picasso wallpaper # 03 of 18, Front Angle, MY 2009, 1280x960
3)Citroen DS3
Citroen DS3 wallpaper # 03 of 108, Front Angle, MY 2011, 1280x960
4)Berlingo
Citroen Berlingo Multispace wallpaper # 03 of 60, Front Angle, MY 2009, 1280x960

Peugeot

1)i-On
Peugeot iOn wallpaper # 01 of 39, Front Angle, MY 2011, 1280x960

2)RCZ Coupe
Peugeot RCZ wallpaper # 07 of 85, Front Angle, MY 2011, 1280x960

3)207
Peugeot 207 wallpaper # 06 of 32, Front Angle, MY 2010, 1280x960

4)508
Peugeot 508 wallpaper # 02 of 35, Front Angle, MY 2011, 1280x960

What do you guys think?

[issigonis]

>>>

At a broad level, the French are rather late entering the Indian auto market ( again!).The PSA group specialises in hatchbacks and smaller cars ( although they have their larger sedans), the Indian marketplace is brutal and there is a very steep learning curve ahead for them.

Apart from EU, they have minimal footprint elsewhere, the exception possibly being PRC. Let us see if they can make their sojourn worthwhile here.

I feel a tinge of concern for them.

Regards, drive safe

[veedub89]

I agree with issigonis. If they plan to enter the market by the end of next year then it would be extremely late for them to do so.

The only way they can grab a share of the market would be if they introduce something truly unique in the market. Because I am pretty sure that VFM offerings is neither one of the companies strong point.

Personally I am looking forward to the DS3 and the RCZ coupe. I just love the quirky looks of the DS3!!

[sgiitk]

If wishes were horses then - a retro Two Horses (aka 2CV) and a retro GS (or was it DS). These will show how modern (even by today's standards) was French technology of more than 50 years ago!