Groupe PSA & Avtec inaugurate Powertrain plant in India
Groupe PSA and Avtec Ltd (a CK Birla Group Co.) inaugurated their greenfield plant in Hosur, Tamil Nadu, which will manufacture and supply powertrains for the Global and Domestic Automotive market.
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 (circa 73 M€) and will generate a direct employment of around 800 people.
The initial manufacturing capacity of this plant will be about 300,000 units per year for the transmissions and 200,000 units for the BS-VI compliant engines. The manufacturing plant was completed in less than 2 years. Additionally, the performance of the industrial set-up will be supported by a significant level of localisation to reach the necessary cost competitiveness.
“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 quality of the relation with our partner, the CK Birla Group, is paramount to the success of our common project, with the creation of a complete eco-system in India,” said Carlos Tavares, Chairman of the Managing Board Groupe PSA.
Groupe PSA has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall and provides mobility and smart services under the Free2Move brand. An early innovator in the field of autonomous and connected cars, Groupe PSA is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia.
“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. We are confident that this new plant will create long-term value and fulfil future market needs better,” said CK Birla, Chairman, the CK Birla Group.
The CK Birla Group is a USD 1.8 billion conglomerate with over 20,000 employees and 41 manufacturing facilities operating in sectors of Technology, Automotive, Home and Building, Infrastructure, Healthcare and Education.
The plant is owned by PSA AVTEC Powertrain Pvt. Ltd., a 50:50 joint-venture created in 2017 between Groupe PSA, France and Avtec.
