PSA Group have signed two joint-venture with CK Birla Group to produce and sell vehicles and components in India by 2020.
PSA Group is a French multinational manufacturer of automobiles and motorcycles sold under the Peugeot, Citroën and DS Automobiles brands. The partnership between the two groups will see an initial investment in capital expenditure of Rs 700 crore for vehicle and powertrain manufacturing in the State of Tamil Nadu.
The partnership entails two joint-venture agreements between the PSA Group and the CK Birla Group. As part of the first agreement, the PSA Group will have a majority stake in the joint-venture company being set-up with Hindustan Motor Finance Corporation (HMFCL) for the assembly and distribution of PSA passenger cars in India. As per the second agreement, a 50:50 joint-venture has been set-up between the PSA Group and AVTEC Ltd for manufacture and supply of powertrains. The manufacturing sites for both vehicle assembly and powertrains will be based in the state of Tamil Nadu.
Commenting on the agreements, Carlos Tavares, Chairman of the Managing Board of PSA Group said: “Benefitting from the strong support of our Indian partner, the CK Birla Group, and a shared vision, this project is consistent with the strong execution of our Push to Pass strategic plan and represents a major step in PSA Group’s worldwide profitable growth in key automotive markets.”
Speaking to the press in Paris on this momentous occasion, CK Birla, Chairman, the CK Birla Group, said “We have embraced ‘Make in India for India and the World’ for several decades and are among the early adopters of frugal manufacturing in the country. I am confident that the coming together of the latest state-of-the-art technology from the PSA Group and the engineering and manufacturing excellence of the CK Birla Group will benefit the automotive sector in India.”
Story: Sahej Patheja
