Groupe PSA, and AVTEC Ltd, a CK Birla Group company, have inaugurated their joint venture greenfield plant in Hosur, Tamil Nadu. The new plant is to manufacture and supply technologically advanced and eco-friendly powertrain for the global and domestic automotive markets, in-line with the future industry norms and customer expectations. Mr. Carlos Tavares, Chairman of the Managing Board of Groupe PSA, and Mr. CK Birla, Chairman of the CK Birla Group, were present, among others, at the opening ceremony.
The initial annual manufacturing capacity of this state-of-the-art plant will be about 300,000 units for the transmissions and 200,000 units for the BS-VI compliant engines. The manufacturing set-up has been completed in less than two years. The plant will manufacture gearboxes in Phase-I to support both the India project and the Groupe PSA needs.
The peak investment in this manufacturing facility would go up to Rs. 600 crore (about Euro 73 million) and it will generate direct employment for around 800 people. Additionally, the performance of the industrial plant will be supported by a significant level of localization 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,” Mr Tavares said.
“We have always striven to evolve with the ever-changing needs of our customers and partners. This partnership that brings together the 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,” Mr Birla said.
The plant is owned by PSA AVTEC Powertrain Pvt. Ltd., a 50:50 joint-venture created in 2017between Groupe PSA, France, and AVTEC. It benefits from Groupe PSA’s latest technology and the CK Birla Group’s engineering and manufacturing excellence.