PSA Group, Avtec inaugurate new powertrain facility in Hosur

Groupe PSA and Avtec Ltd, a CK Birla Group company, inaugurated their new greenfield plant in Hosur, Tamil Nadu, today. The inauguration marks the official start of the industrial setup of this facility, which will manufacture and supply technologically advanced and eco-friendly powertrains for global and domestic automotive markets. In attendance were Carlos Tavares, chairman of the managing board, Groupe PSA and CK Birla, Chairman, the CK Birla Group.

The plant’s initial manufacturing capacity will be about 3,00,000 transmission units per annum and 2,00,000 BS-VI-compliant engines. The plant has been completed in a record time of less than 2 years. The facility 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 unit would go up to Rs 600 crore (around 73 million euros) and will directly employ around 800 people. Additionally, a significant level of localisation is meant to help reach the necessary cost competitiveness.

Groupe PSA’s chairman Carlos Tavares 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.”

Commenting on the development, CK 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, a 50:50 JV set up 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.

The PSA Group, which includes brands such as Peugeot and Citroën, had bought the iconic Ambassador brand from Hindustan Motors early last year. The group’s plans for the model are unknown and it remains to be seen if it will revive the model or relaunch the brand as a retro-lifestyle offering with an all-new car, like BMW did with the Mini. Testing of Peugeot cars had begun in the country in mid-2017 with models such as the 3008 and 2008 crossovers and the 208 hatchback under consideration.