MUMBAI: Europe's second largest car maker PSA Group's Peugeot is planning an India comeback and has hired a consultancy and commissioned a study for the purpose, ET has learnt. The company expects to know the results by the end of the year, before finalising its blueprint.

Peugeot, under Carlos Tavares, a former Renault veteran, has made a turnaround globally, giving it the confidence to eye India again, which is billed as the third largest market in the world by 2020 with 5 million annual sales. When contacted, a group spokesperson said, "PSA has implemented a new organisation by regions. India-Pacific region shows India's importance to PSA. But at this stage, there's no decision for a rapid return to India."

The company has approached many potential aspirants who had worked with Peugeot in the past and will be extremely cautious this time; it will enter the two-wheeler space before testing the car market, said people familiar with the development.

"The plan is to have the entire group's presence in India right from two-wheelers, passenger vehicles to light commercial vehicles in the medium term. Immediate focus will be on two-wheelers, and with the help of Mahindra & Mahindra, the company will try to establish its presence by 2017 and build Peugeot brand, before expanding to passenger vehicles by 2020," said one of the persons.

M&M recently acquired a majority stake in PSA's two-wheeler business and intends to help the French automaker expand its footprint across the globe, including in India. M&M is likely to keep the Peugeot brand, and will use the French automaker's vehicle platform for its own fledgling two-wheeler business.

People close to the company said Peugeot's two-wheelers may be manufactured or assembled out of Mahindra's Pithampur facility. The French company is also eyeing Chennai as an alternative base, apart from studying Sanand, Gujarat, for future business.

PSA Group's tryst with India is not new. It was one of the first companies to set up base in India, once the government opened up investment to MNCs. However its three-year journey with Premier Automotive Ltd fell apart due to differences with its local partner.

The company also conducted a feasibility study along with Tata Motors for the car 307 in 2001, but the plan didn't work out due to viability issues.

Multiple studies wre done between 2000 and 2010, before the company decided to invest in a full-fledged factory in Sanand in 2011. A global slowdown and domestic crisis led the company to surrender land to the state in 2013-14.

Tavares too is not new to India; he was an integral part of Mahindra-Renault's JV for Logan and is known to be a good friend of Pawan Goenka, executive director of Mahindra &Mahindra, which probably led to Mahindra buying into PSA's two-wheeler division recently. People close to the company said the French carmaker has kept all its options open " tying up with Mahindra for its passenger vehicle, entering India with its Chinese partner Dongfeng, or even going solo here.