MUMBAI, February 12: PAL-Peugeot Ltd, the joint venture company between French car maker Automobile Peugeot and Premier Automobiles, has withdrawn Peugeot 309 model from the Indian market. The company decision follows the French partner's decision to stop supply of CKDs of the 309 model to India.With this, sales and production of the French model will stop henceforth, officials say adding that the JV company will continue to produce the petrol and diesel versions of Premier 118 NE model. Due to lack of demand for its products, the production cycle at the company's Kalyan plant has been reduced to four days a week on a single shift basis. The company is now able to produce only two-three 118 NEs per day, officials said.During the formation of the JV, Peugeot had introduced the 309 model to India, while Premier had transferred its 118 NE model to the new company. However, despite the initial euphoria, the French car failed to make any dent into the Indian market, which was, hitherto, dominated byMaruti's Esteem. The launch of 309 model in the premium segment, where the American car giants, subsequently introduced their models further compounded the problem of the company.As the auto boom in the country went bust in 1996, Peugeot's high priced model was the first casualty. Other models in the same segment like General Motors' Opel, Daewoo's Cielo and, Ford's Escort are also facing demand contraction.In fact, in order to generate demand, Daewoo took a strategic step to reduce the price of its Cielo model by Rs 1.8 lakh. While due to high volumes and indeginisation, Maruti's Esteem continued to dominate the premium segment.Pal-Peugeot's move to withdraw the 309 model from India will put thousands of Peugeot 309 owners in a tizzy, though the French car maker has assured supplies of the spare parts. However, after sales service of the company will remain a major concern as few engineers are trained to take care of 309 model. Besides, all those who have booked the car in the past, will have nooption, but to go for other model. Already the company has faced substantial cancellations to the tune of 50 per cent.
