Reports suggest Peugeot wants factory capacity in India, while JLR owner Tata wants to build scale for Jaguar and Land Rover
Jim Holder
6 October 2015

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 208, 308 and 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.

  

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Comments
19

6 October 2015
Makes huge sense, XE a good car, Peugeot might look to replace the 508/C5, but as they are slow sellers it doesn't make sense to develop a platform alone. They were once tied to a GM Insignia platform share, but it fell through.

6 October 2015
sirwiggum wrote:

Makes huge sense, XE a good car, Peugeot might look to replace the 508/C5, but as they are slow sellers it doesn't make sense to develop a platform alone.

A RWD Citroen? Yeah, that would be... something... I guess.

Much more likely for Tata to use PSAs EMP2 plattform ( 308/Picasso ) like unionjack has mentioned.

 

 

6 October 2015
I think a tie-up makes a lot of sense. JLR will soon be looking to find a small platform to undertake the next level of its expansion. This will be the replacement for the Evoque, and any potential sub-XE models (competitors for the CLA/GLA / 1or 2 series / A3 & Q3 models). Rather than develop their own platform to target that space, they would do well to tie up with another manufacturer. I think potential contenders could be PSA, Fiat or Mazda.

6 October 2015
Maybe there will be platform cooperation between PSA and Tata to replace the current Tata range. Didn't the Tata Indica (also the CityRover) have a Peugeot engine at one point, so they have cooperated before?

Not so sure about JLR, unless it relates to a replacement for the Evoque/LRDS platform which has Ford origins, and being transverse engined is better suited to smaller vehicles than the XE/XF platfom

6 October 2015
Sounds an ideal partnership, as neither has a product that overlaps. We know JLR want to go smaller and need a platform. PSA need a way of making bigger cars without the development costs for small numbers.

6 October 2015
A Jaguar and a Lion in the same cage does not seem like a very good idea to me. But a tie between Tata and Peugeot may make a lot more sense.

6 October 2015
Remember the Sunbeam Alpine, Sunbeam Tiger, Sunbeam Stiletto, Sunbeam Rapier? All names owned by PSA Peugeot Citroen. Maybe Sunbeam-Talbot too, although perhaps that's too close to the painful Talbot episode of the 1990s. My point is, a new JV could open up new brand possibilities. Maybe even Rover...!

MG Writer

6 October 2015
First thing PSA should do for their own range is borrow some 4WD bods and hit the streets with proper crossovers. They've got the body shells, just not the running gear and it's a significant market worldwide.

6 October 2015
What would be really interesting would be a proper, small, entry level Jaguar to draw younger and less wealthy into the brand. AM sort of tried it with the Cygnet, but a ludicrous price, and a laughable base vehicle saw that one go the way it deserved. However, a Jaguar based on the excellent DS3 would instantly punch BMW & MINI right on the nose. Please Mr Tata, make it happen

jt

6 October 2015
What would be really interesting would be a proper, small, entry level Jaguar to draw younger and less wealthy into the brand. AM sort of tried it with the Cygnet, but a ludicrous price, and a laughable base vehicle saw that one go the way it deserved. However, a Jaguar based on the excellent DS3 would instantly punch BMW & MINI right on the nose. Please Mr Tata, make it happen

jt

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