Reuters (Mumbai) - French automaker PSA Peugeot Citroen, fighting falling sales in its home market, is reviewing its India plans and has started efforts to shut down its office in Mumbai, the Economic Times reported on Tuesday, citing a person close to the developoment.
PSA said in September it was investing around 650 million euros ($852.4 million) to build a new manufacturing plant in India to further strengthen its business in this fast-growing market.
Europe's No. 2 car maker after Volkswagen said this month the number of cars it sold last year fell 1.5 percent to 3.5 million as expansion in emerging markets failed to offset a decline in its market share in Europe.
The Economic Times said that the carmaker is working out strategies for "frugal spending" on the India project.
A PSA spokesman in Paris did not immediately respond to an email from Reuters for comment.
