French auto major PSA Peugeot has started working on its integrated manufacturing plant with a ‘bhumi pujan’ in the state of Gujarat.

Grégoire Olivier, member of Peugot's managing board and CEO of Asian operations, Jean Raphael Peytregnet, the Consul General of France in Mumbai, Vincent Rambaud, director general of Peugeot and Frédéric Fabre, managing director of PCA were present in the Indian ritual involving sacrificial fire about 40 kms from Ahmadabad on Thursday.

They then dug the ground after the ceremonial breaking of the coconut marking the arrival of the company in one of the fastest growing automotive markets in the world. Peugot officials also wished people on Gokulashtami after carefully following priests throughout the ritual.

Peugeot, which is the second largest car maker in Europe, will build the integrated manufacturing plant with an investment of Rs 4,000 crore. The facility will have a capacity to produce, 70,000 cars in the first phase at the location.

“We shall start with the manufacturing of C and B+ segment cars here, which we think are very fast growing segments in the Indian market. The first car is proposed to be rolled out in 2014. It shall be a high-end C-segment model 508, a sedan, from the existing range of Peugeot,” Rambaud said.