PSA Peugeot Citroen (PEUGY), France's biggest carmaker, may build a factory in India to tap growing demand for cars in the country, Bloomberg News reported.
The company may spend around 700 million euros ($881 million) on the factory in the southern state of Andhra Pradesh, Bloomberg News said without naming its sources. The factory would have the capacity to produce 100,000 cars a year.
"There is enough space for manufacturers to grow as the Indian economy expands and aspirations rise," Ammar Master, a Bangkok-based analyst at J.D. Power & Associates told Bloomberg News. "It is a good thing if PSA enters the market as it's the last major global automaker left to come to India."
Peugeot executives will decide on the project later this month.
Peugeot May Build Factory in India to Tap Growing Demand