NEW DELHI (Reuters) -- PSA/Peugeot-Citroen says it has no plans to re-enter India's car market any time soon after an Indian newspaper reported that the French carmaker is in talks with Tata Motors to form a local partnership.
The tie-up between PSA and Tata Motors could include the Indian company producing and distributing the French automaker's vehicles in the country, the Economic Times reported, quoting several people close to the development.
The two automakers may also share engine technology and vehicle platforms, the report said, without specifying a timeline for PSA's entry.
"To date, there is no decision taken regarding a swift return to India," a PSA spokesman said.
"In 2014, Peugeot created a regions based organization. The fact that 'India Pacific' is among those regions show the importance of the Indian market for Peugeot," the spokesman said, adding that the company would not comment on any speculation.
A Tata Motors spokeswoman said that while the company may pursue several initiatives at any time, "we do not have any specific announcement at present on this."
In 2011, PSA planned to re-enter India after exiting the market nearly two decades ago. At the time, the automaker said it would invest around 650 million euros ($730 million) to build a new manufacturing plant in western India, with an initial production capacity of 170,000 vehicles per year.
A slowdown in Europe, which hit PSA hard in late 2012, forced Europe’s second-biggest carmaker to put its India plans on hold.