Nica Onate / PSA Group | January 26, 2017 13:51
PSA Group to return to India with CK Birla Group, aims to sell cars by 2020
PSA Group, the manufacturer of Peugeot and Citroen, will soon be producing and selling cars in India. The group recently announced its partnership with the CK Birla Group with the aim to produce as well as sell vehicles and components in the aforementioned country by 2020.
The company said the joint venture lays the foundation for a long term partnership with an initial investment in capital expenditure close to €100 million. The partnership includes two joint-venture agreements.
For the first agreement, the PSA Group will hold a majority stake in the new joint-venture venture company being set up with the Hindustan Motor Finance Corporation Limited (HMFCL) for the assembly and distribution of PSA passenger cars in India. For the second agreement, a 50:50 joint-venture is being set-up between the PSA Group and Avtec Ltd for manufacture and supply of powertrains.
“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,” said Carlos Tavares, Chairman of the Managing Board of PSA Group.
“We have embraced ‘Make in India for India and the World’ for several decades. I am confident that the coming together of the latest technology from the PSA Group and the engineering and manufacturing excellence of the CK Birla Group will benefit the automotive sector in India,” said CK Birla, Chairman of the CK Birla Group.
The initial manufacturing capacity will be set at about 100,000 cars per year and will be followed by incremental investment to support a progressive ramp-up of the long term project. Meanwhile, the manufacturing capacity for powertrains will cater to the domestic market needs and global OEMs.