India as inexhaustible attract foreign investors, particularly automotive principals from around the world. After Suzuki, Toyota, Hyundai, Volkswagen and Honda, PSA Peugeot Citroen is now following the French want to produce cars in cider country by cooperating with local assembly plant. Fresh funds were disbursed 546 million U.S. dollars or Rp4, 87 trillion.

Peugeot Chief Executive Officer Philippe Varin said it is considering a plant which can be invited to one of cooperation to assemble compact cars aimed at the lower segment (entry level). Even the PSA Group reportedly is preparing a special model for the Indian market.

Announcement of expansion in India has become the latest step after two years ago (2009), Peugeot delay plant near Hyderabad, Andhara Pradesh.

India became one of the automotive business expansion strategy of the PSA Group, in addition to China, after the market trends in developed countries began to stagnate and even the growth experienced by developing countries. In China, it is clear Varin, Peugeot-Citroen is waiting for approval of a joint effort with China's Changan Automobile Group Co., signed 2010. In addition, Peugeot also been working on the third factory in China together with Dongfeng Motor Group Co. in order to increase market share.

Max Warburton, an analyst at Sanford C Bernstein in London as reported by Bloomberg (10 / 2) says, PSA Peugeot Citroen become the most lag principals develop a production base outside Europe behind Volkswagen, Mercedes-Benz and BMW.