The feasibility study announced by Tata Engineering in January 2001 for developing a mid-size passenger car based on a PSA Peugeot Citroen platform for manufacture by Tata Engineering has been completed. The viability of the business case was found to be primarily affected adversely by the high logistics costs between Europe and India as well as the limited volumes in the Indian market for this type of car.

Tata Engineering and PSA Peugeot Citroen have accordingly decided not to go forward with the programme at this time.