Andhra Pradesh’s state government has once again failed to woo European auto-makers in its attempt to launch an automobile manufacturing industry within the state.

In its most recent attempt to kick-start the industry, the Government of Andhra Pradesh actively courted France-based PSA Peugeot Citroen in the hopes that the company would establish automobile manufacturing facilities in the state.

The government had hoped that PSE Peugeot Citroen would act as an anchor client, which would help the state government to develop an automotive cluster complete with assembly production line, ancillaries units, dye manufacturing, and body-building shops.

However, the European car-maker opted to open a new Rs. 4,000 crore facility with an initial three lakh cars per year capacity in neighboring Tamil Nadu at Sriperumbudur. The plant will be located not far from Chennai which hosts BMW, Hyundai, and Ford.

This is not the first time that the Government of Andhra Pradesh has failed to launch its automobile manufacturing industry either. In fact, it is the third that the government’s efforts have been unsuccessful.

Previously, German auto giant Volkswagen attempted to launch operations in the state, but the proposal ran into a number of scams and roadblocks. As well, Hyundai’s official BVR Subbu indigenous auto production project proposal failed to get off the ground in Andhra Pradesh.