PAL-Peugeot Ltd.
A joint venture between
PAL and Automobiles Peugeot, France in 1994 in which each of them
hold 31.7%. became a Public Ltd company in 1995. The company
started off in 1994 by acquiring the Kalyan plant of PAL for
manufacturing 118NE and 1.38 D at the initial stages and Peugeot
309 at the later stage. The diesel version of Peugeot 309 received
a favorable response and was able to make a mark.
The company has reached
dead-end following break-up with Peugeot, France. Initially it
attracted attention from new entrants in the car segment who were
planning to set up manufacturing facility in the country. But till
today no bail out offer has been made for PAL Peugeot.
The company is clearing
all inventory of completely built cars at a hefty discount ranging
from Rs0.1mn to Rs0.15mn. The existing owners of Peugeot will also
face difficulty in obtaining spare parts for the car.
