PSA AVTEC Powertrain Pvt Ltd - a 50:50 joint-venture created in 2017 between France-based Groupe PSA and AVTEC (a CK Birla Group Co) - has opened its greenfield plant in Hosur (Tamil Nadu) to manufacture and supply technologically advanced and eco-friendly powertrain for the global and domestic automotive market, in-line with the future industry norms and customer expectations.
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 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 (Euro 73 million). Additionally, the performance of the industrial set-up will be supported by a significant level of localisation to reach the necessary cost competitiveness.
Carlos Tavares, Chairman, Groupe PSA, commented, “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.”
CK Birla, Chairman, the CK Birla Group, added, “We are confident that this new plant will create long-term value and fulfill future market needs better.”