Inching closer to the goal of making it big in the Indian automotive market, French auto major Groupe PSA, along with its partner AVTEC, a CK Birla Group company, on Thursday inaugurated their joint venture greenfield plant at Hosur in Tamil Nadu. The facility will manufacture and supply technologically advanced powertrain for the global and domestic automotive markets. The ceremony was attended by Carlos Tavares, chairman of the managing board, Groupe PSA and CK Birla Group chairman CK Birla.
The initial manufacturing capacity of the plant will be about 3 lakh units per year for transmission and 2lakh units for BS-VI compliant engines. The company claimed that the manufacturing set up has been completed in a record time of under two years. 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 direct employment of around 800 people.
Additionally,the performance of the industrial set-up will be supported by a significant level of localisation to reach the necessary cost competitiveness.
The plant is owned by PSA AVTEC Powertrain, a 50:50 joint-venture created in 2017 between Groupe PSA and AVTEC.