Currently reading: Jaguar Land Rover owner Tata linked to PSA Peugeot Citroen partnership
Reports suggest Peugeot wants factory capacity in India, while JLR owner Tata wants to build scale for Jaguar and Land Rover

Jaguar Land Rover parent company Tata is in talks with PSA Peugeot Citroen about a long-term technical co-operation, Autocar understands – and it could lead to a platform and engine sharing agreement between the two parties in future.

Talks are believed to have been instigated as a result of Peugeot’s desire to begin manufacturing cars for sale in the Indian market again after a 15-year absence. According to the Economic Times, Peugeot has held talks with Tata, General Motors, Mahindra & Mahindra, and Hindustan Motors - but the first of those firms is now the front-runner.

Tata has spare capacity at its Sanand plant in Gujarat where the Tata Nano is made. Peugeot is believed to want to make the Peugeot 208, Peugeot 308 and Peugeot 3008 in India, and with Nano sales continuing to be well below predictions, Tata has spare factory space.

Tata’s motivation is reported to extend deeper than a need to fill capacity at the Sanand plant, however, with reports suggesting that it is eager to agree a platform and engine deal to extend its product line-up as well.

It is unlikely this would have an impact on Jaguar or Land Rover, however, as expansion plans for both of the British brands are already in place, including a new factory in Slovakia and expanded facilities in the UK.

Although the plan remains subject to ratification, PSA boss Carlos Tavares is said to want PSA’s strategy for the Indian market in place by the end of 2015.

Tata previously aligned with Fiat in the Indian market in 2007, but the relationship folded in 2012.

Peugeot currently has powertrain partnerships with Toyota and Ford, and previously supplied components that were assembled by BMW for its 1.6-litre petrol engine. It also has platform partnerships with General Motors and its part-owner Dongfeng for Asian markets.



Latest business news

Read our review

Car review

Could Jaguar's transition into an all-electric brand force one of its less commercially successful models into retirement too early?

Join the debate

Add a comment…
Chris C 6 October 2015

Tata PSA

Don't forget the Chinese connections - JLR has a joint venture with Chery but Dongfeng have a large share holding in PSA and are/were rumoured to be interested in a majority share.

PSA needs direction after recent styling and quality issues while their expertise in diesels may prove to be obsolete given the (oil industry funded?) current attacks on diesel engines.

For smaller platforms there are ex-Rover engineers already working for Tata who could probably do a good job anyway.

jonboy4969 6 October 2015

I wondered how long it would

I wondered how long it would be before someone mentions the Rovers Return, well, it aint going to happen, i really dont know how many times Jaguar, JLR and TATA have to say it, there is NO chance of a Rover revival.~

The current new platform can go smaller, but only just, and with minimal overhangs, an XD can go into production, along with the Small Range Rover thats already under development, off that same platform.

Citytiger 6 October 2015

JLR's V6 and the recently

JLR's V6 and the recently replaced 2.2 diesels definitely have PSA origins.
jonboy4969 6 October 2015

"JLR's V6 and the recently

"JLR's V6 and the recently replaced 2.2 diesels definitely have PSA origins."

The new 2.0 litre engines have NOTHING to do with PSA, Ford, Rolls Royce, Boeing or anyone else, its JLR's own engine, build in Wolverhampton