PSA group plans to re-enter Indian Market
India: The French carmaker group,
PSA, is planning to enter in passenger vehicle market of India by 2018. Earlier
the company entered in Indian automobile market, two decades before, however,
had to make a quick exit. According to executives at PSA group, the company
would opt for certain tie-ups with domestic players such as Tata Motors,
Mahindra & Mahindra, Hindustan Motors and General Motors India.
“India has a great potential
and it is part of my ‘Push to pass’ (mid-term) plan.” said Carlos Tavares,
chief executive officer of PSA group in Paris Motor Show.
As per company spokesperson, PSA
group will initiate sales and marketing of its vehicles’ on its own, however,
the company would tie-up with Indian partners for the manufacturing process.
Moreover, the Indian passenger vehicle market is likely to touch 6 million
units by 2020. As per the company, the group witnessed a great potential in the
Indian market.
According to a recent report published by TechSci Research, “India
Tire Market Forecast & Opportunities, 2020”, the Indian
tire industry the presence of major automotive OEMs such as Maruti Suzuki,
TATA, Hero, Honda Motors, JCB, Escorts, etc., is significantly driving demand
for tires from OEM segment.
Also, the passenger car segment
accounted for a volume share of over 20% in the domestic market during 2015.
As per TechSci Research, the highly
potential passenger car market has forced the international group, PSA, to make
this strategic move to re-enter in the India market. Moreover, the step taken
by the company would also give them access to a large pool of consumer base in
the India, to tap upon. Eventually, with the growth in the sales of PSA
vehicles in Indian market in coming years, the tire market of the country is
simultaneously expected to rise in approaching period.