The company also announced that it is shifting base from Mumbai to Ahmedabad.
The second largest European car manufacturer, had proposed to roll out the first car-high end, C-segment model 508, a sedan-in India from the Sanand plant in 2014, having a production capacity of 1,70,000 cars in the first phase.
"PSA Peugeot Citroen is currently evaluating the scheduling of its project in India which may lead to some adjustments to the schedule as it currently stands," a group spokesperson said in a statement.
"As a consequence of its agreement with the state of Gujarat, Peugeot will switch its offices from Mumbai, where they were set up during the early days of the project, to Ahmedabad in Gujarat," it said.
The company had projected to achieve full production capacity of 3,40,000 units by early 2016.
The company had performed ground breaking ceremony for its integrated manufacturing plant here in November last year.
The Sanand plant is also proposed to have an engine manufacturing facility with production capacity of 100,000 units annually.
The company had proposed that the Sanand plant would focus on Indian market and also could export to right-hand driven car markets from here like ASEAN nations and Australia.
Peugeot had proposed to start the manufacturing of C and B+ (plus) segment cars at Sanand, 40 km from here, which it envisages as a very fast growing segment in the Indian markets.
The company had signed a State Support Agreement with the Gujarat government in September last year for setting up the plant.
The company has also proposed to set up an Automotive Skills Development Institute (ASDI) in the Sanand automotive cluster here on public private partnership (PPP) basis with the Gujarat government to train around 5,000 people.
The institute was scheduled to start operations by 2013. The company had proposed to leverage the experience of its professors in the PSA University for developing the skill development programmes.
The company targeted to achieve nearly 80 per cent localisation by 2015 at its proposed facility in Gujarat as a vendor park is also proposed to come up under this project.
Peugeot is expanding outside Europe, which include India, Latin America, Russia and China and has invested a total of 3.7 billion Euro's, with an investment of 650 million Euros in India alone.