French automaker PSA Peugeot Citroen, fighting falling sales in its home market, is reviewing its India plans and has started efforts to shut down its office in Mumbai, a business newspaper reported on Tuesday, citing a person close to the development.
PSA said in September it was investing around 650 million euros to build a new manufacturing plant in India to further strengthen its business in this fast-growing market.
Europe's second largest car maker after Volkswagen said this month the number of cars it sold last year fell 1.5% to 3.5 million as expansion in emerging markets failed to offset a decline in its market share in Europe.
The newspaper said that the carmaker is working out strategies for "frugal spending" on the India project.
A PSA spokesman in Paris did not immediately respond to an email from Reuters for comment.
