French auto major PSA Peugeot Citroen, which is investing Rs4,000 crore in a new plant in Sanand in Gujarat, will be rolling out 170,000 vehicles from there by 2014.
The foundation-stone laying ceremony of the plant was held at Sanand, about 40km from Ahmedabad, on Thursday, two months after Europe's second-largest carmaker signed an agreement with the Gujarat government for the plant.
The new plant is coming up near the Tata Motors plant, where the Nano is being manufactured.
Gregoire Oliver, CEO, Asian operations, Peugeot, told the media that the company's vision of becoming a global player would be incomplete without a presence in India. The French carmaker is focussing on developing markets including India and China to ensure growth in view of stagnant markets in Europe.
The 600-acre plant at Sanand will include a vendor park, enabling the company to increase indigenisation.
The company also plans to double production at the plant within a few years. It also plans to establish an automotive skills development institute to train about 5,000 people by 2013.