Groupe PSA, CK Birla Group inaugurate 1st Powertrain JV plant in Tamil Nadu

New Plant will attract investment of Rs 6 billion

Groupe PSA & the CK Birla Group on Thursday inaugurated their first Powertrain JV plant in India. The new plant, in which the company would invest Rs 6 billion, is a greenfield plant for the transmissions and BS-VI compliant engines.

The plant is located at Hosur, Tamil Nadu and close to Bangalore. The facility will 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 ceremony was attended by Carlos Tavares, Chairman of the Managing Board, Groupe PSA and CK Birla, Chairman, the CK Birla Group.

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 set up has been completed in a record time of less than 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 6 billion and will generate a 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, said the company.

Carlos Tavares, Chairman of the Managing Board Groupe PSA said, “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.”

Birla, Chairman, the CK Birla Group said, “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.”

The plant is owned by PSA AVTEC Powertrain Pvt. Ltd., a 50:50 joint-venture created in 2017 between Groupe PSA, France and AVTEC. It benefits from Groupe PSA latest technology and the CK Birla Group’s engineering and manufacturing excellence.