Peugeot denies newspaper report of partnership with M&M

A daily newspaper reported that the alliance would involve technology sourcing, mutual sharing of production capacity in France and India

French carmaker PSA Peugeot Citroen on Wednesday denied an Indian newspaper report of partnership talks with Mahindra & Mahindra Ltd to share technology and production facilities.

A daily newspaper on Tuesday reported, citing unnamed sources, that Mahindra was in talks with Peugeot on a strategic alliance that would involve technology sourcing, mutual sharing of production capacity in France and India, as well as "significant investments".

"The Indian market is obviously important to us for the future, but at this stage we are not in discussion with anybody on a rapid return to India. Our current priority is the recovery of the group," said a spokeswoman for Peugeot.

A Mahindra spokesman declined to comment.

Peugeot left the Indian market in 1997 and several attempted comebacks have since failed to get off the ground.

Mahindra, which controls Korean carmaker Ssangyong Motor Co, previously had a partnership with French carmaker Renault SA to build and sell the Logan sedan in India which the companies ended in 2010.