Peugeot chief executive Philippe Varin is looking for an alternative should cooperation with General Motors and its European Opel division collapse, the magazine said.
A spokesman for the Indian automaker however said that the report is "absolutely incorrect".
GM and Peugeot have halted talks on a deeper tie-up amid misgivings about the French carmaker's worsening finances and government-backed bailout, Reuters reported on Tuesday citing people familiar with the matter.
A Peugeot spokesman wasn't immediately available for comment.
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