Telco joins hands with Peugeot to develop passenger cars

MUMBAI, JAN. 8. In a surprise development, Tata Engineering and Locomotive Co. and PSA Peugeot Citroen of France, Europe's second largest car manufacturer, are to jointly develop a passenger car for production at the Telco plant in Pune.

The two have agreed to work together to examine the feasibility of jointly developing a car on the Citreon platform for manufacture by Tata for the Indian market as part of its passsenger car business.

In a statement here today, Telco said Citreon would contribute one of its existing platforms for the development of a newer generation car and its expertise in designing worldclass passenger cars. According to Tata spokesman the two would jointly carry out a feasibility study to establish economic viability and profitability of the project. The report would be ready in the next six months.

He said the level of investment and the type of car was too premature to be discussed but it should be available after 2003, which could be a three box sedan based on the Citroen platform II.

The research and development centre of Telco and a dedicated project team and one from Citroen were to work together and a joint steering committee would coordinate the project, the spokesman said.

He said the two had agreed to co-batch the car in case manufacturing seemed a feasibility at the end of the study.

He said the decision to develop a new Tata passenger car for the Indian market should be confirmed if mutual benefits of the project were established.

The statement said Citreon would contribute one of its existing platforms for the development of a newer generation car and its expertise in designing worldclass passenger cars.

Telco, a recent entrant in the passenger car market, would contribute its competitive development technology and production processes as well as its understanding of the local market, it said.

Citroen had in the past tied up with two Indian automobile manufacturers, Mahindra & Mahindra and PAL. The tie up with Mahindra & Mahindra, some years ago with a ten per cent stake, was for supply of engine technology while later they had a joint venture with PAL for developing the passenger car 309.

- PTI

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