The initiative to establish Peugeot Automobile Nigeria Limited was taken by the then Federal Military Government under the leadership of General Yakubu Gowon. The idea was concretised on October 6, 1969 when the Government invited 16 reputable vehicle-manufacturing companies in the world to establish a vehicle assembly plant in the country.
Twelve years before the initiative was taken, Peugeot cars made their first entry into Nigeria when individuals imported about 100 units of the Peugeot 403 model into the country. These cars soon became popular due to their legendary reliability and suitability to Nigerian road conditions. The demand for Peugeot cars in Nigeria rose sharply again in the 1960’s with the further introduction of the Peugeot 404 model. With the high demand of Peugeot products which was a mark of acceptability, it was therefore not surprising when in May 7, 1971, Automobile Peugeot of France’s proposal was selected out of those tendered by 16 various vehicle manufacturers.
Peugeot Automobile Nigeria Limited, PAN was incorporated in December 15, 1972 as Limited Liability Company with an authorized share capital of Three Million Naira. Twenty-seven months after incorporation, the then head of State, General Yakubu Gowon, commissioned the assembly plant on March 14, 1975, and though full operations had commenced on March 2, 1975.