French auto major Peugeot looks set to re-enter the Indian market which it exited in the late 1990s. Peugeot-Citroen is currently looking into locations around the country, including Tamil Nadu, to set up a manufacturing plant. The lure of the thriving Indian car market (which is expected to grow from the two million cars a year to six million in 10 years time), particularly at a time when Peugeot’s market share in Europe is eroding, seems to be too strong to resist. Tamil NAdu government officials confirmed the development saying “We are in discussions with the company. The plant would be located near Chennai,” said Rajeev Ranjan, principal secretary, industries department, government of Tamil Nadu. “Everything is still at the discussion stage at this moment.”
Details of size of investment, planned capacity or location of the plant is not available. Peugeot could not be reached for a comment either. Sources added that Peugeot was exploring various options – from assembling imported units to setting up a full fledged factory – on the outskirts of the city.If the plant comes up near Chennai, it would make Peugeot, the second French major to enter Tamil Nadu after Renualt-Nissan. Chennai is also home to Hyundai, Ford, Mitsubishi and BMW and currently has the highest installed capacity of cars in India – 10.80 lakh. 
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