PARIS -- PSA/Peugeot-Citroen on Thursday said it will invest 650 million euros ($932.7 million) to build a new manufacturing plant in India to further strengthen its business in the fast-growing market.
"We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third-largest automotive market by 2020," PSA CEO Philippe Varin said in a statement.
Based at Sanand in Gujarat, western India, the plant will have an initial capacity of 170,000 vehicles per year, with options for further expansion.
The first locally produced Peugeot car is expected in 2014.
PSA will also open an engine and transmissions plant locally to serve the car-assembly factory.