The French carmaker Peugeot had at one point in time shut its shop after a long stay in the Indian market. After it pack up, it again declared at the Delhi Auto Expo held last in 2012, that it would be making a comeback soon.
The company was to resume in India by offering 508, which would be competing with BMW 3 series. At first the company had planned to offer the car as a CBU import incorporating diesel engine only. This would measure the response of the customer and then accordingly increase the capacity.
This vehicle would be motivated by 2.2 liter, CRDi engine and around the year 2014 the carmaker would be ready with the car made strictly for India.
Peugeot had also announced that they were interested in setting up a production facility at Sanand in Gujarat, close to the Tata Nano plant. But unfortunately, because of recession Peugeot had to join forces with GM for the future plans.
Peugeot scrapped its set up base plans in Gujarat and proposed to GM to let them roll out their models from existing GM plants, but the later bluntly refused.
The carmaker is facing tremendous loss at the European market front and therefore has scrapped plans of new investments and is looking at recovering all losses.