When it comes to car market in India, the French may not have tasted success like the Americans, but they are never going to let go one of the biggest emerging car markets like India that easily. After Renault, now another French car manufacturer Peugeot-Citroen has confirmed its participation in India this year.

This will not be the first time that Peugeot is coming to India. It was in India during 1993-94 and had marketed is Peugeot 309 model here. A series of unfavourable incidents left it with little option but to leave the country in 1997. The incidents that occurred to the French automotive giant in the last decade are hardly a reason of worry for Peugeot as they have come back in India with a renewed vigour. But it is likely that the company will bring in its best selling car models to test the Indian waters. Citroen with its wide range of small cars in its portfolio might be selected to do the dummy run in India to judge the mood of the Indian car buyers.

The tough part of the project will be in creating an effective network of distributors for the company’s products and services. When Peugeot left in 1997, it had left back many unpaid dues to its old financiers, dealers and even customers. The company will first have to build confidence in the Indian distribution network to re-gain its lost footing. It will have to devise clever moves to instill confidence in customers who are unsure if the company packs up in India for the second time.

But on the surface, Peugeot looks like it is sure of its India plans and has already started scouting for land to set up its manufacturing plant. Many states are already wooing the car manufacturer to set up its manufacturing facilities in their territory. Peugeot can make best use of the government’s incentives and strengthen its base in India. However, it has to be committed to stay and play in a country which has forced many big car manufacturers to come up with India specific products.