Peugeot was (and is) never a flop! And when Peugeot 309 was launched it was one of the best cars available. Unfortunately the company burned their fingers in their relation with the Indian partner (Doshi Group, I believe) and stepped back from India.
I would say that it was a big loss for us. Peugeot is one of the top selling brand in Europe. They have excellent cars for all segments and the engineering quality is superb. Recently there was a rumor that Peugeot is considering the launch of Citroen in India.
Till date i have spotted only a few Jazz in nagpur and that too in white. I am still in love with its beauty but its the price keeps me away from it. I once joked to my mom that i wanted jazz as our small car(as an upgrade to alto), she took it seriously and said that she will gift it to me after completion of my graduation. Since then i am dreaming of it though i wont let them buy it. I want to earn my own car.:)