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.