Owners Of Car Brands Peugeot, Citroen And Ambassador Groupe PSA Inaugurate Their First Powertrain JV Plant In India With The CK Birla Group
Groupe PSA and AVTEC Ltd (a CK Birla Group Co.) inaugurated their greenfield plant in Hosur, Tamil Nadu. Marking the formal start of industrial set up of this site, which will manufacture and supply technologically advanced and eco-friendly powertrain for the Global and Domestic Automotive market.
Mr. Carlos Tavares, Chairman of the Managing Board Groupe PSA said, “We want to be Indian in India. With this inauguration, we have taken another critical step towards the execution of our Push to Pass strategic plan and commitment towards the Indian customers.”
The initial manufacturing capacity of this state-of-the-art plant will be about 300,000 units per year for the transmissions and 200,000 units for the BS-VI compliant engines. The plant will manufacture gearboxes in Phase I to support both the India project as well as supplying Groupe PSA needs. The peak investment in this manufacturing set up would go up to Rs. 600 Crore and will generate a direct employment of around 800 people. Additionally, the performance of the industrial set-up will be supported by a significant level of localization to reach the necessary cost competitiveness.
Commenting on the development, Mr. CK Birla, Chairman, the CK Birla Group said, “We have always striven to evolve with the ever-changing needs of our customers and partners. This partnership that brings together latest technology from Groupe PSA and the manufacturing excellence of the CK Birla Group is a step in the same direction.”
The French car manufacturer PSA Group announced last year that it would make a come back in the Indian passenger car market by 2020, saying that it would build cars in Tamil Nadu under an initial 100 million-euro ($107 million) joint venture investment with Birla-owned HMFCL, with an annual production capacity of 100,000 vehicles. The revival of the Ambassador brand is not known as yet while Peugeot began testing of cars in the country in mid-2017.
