Under new joint venture of the French Automotive manufacturer PSA (Peugeot Société Anonyme) and Indian automotive parts manufacturer AVTEC a new manufacturing facility is being built. The construction was started with a ground-breaking ceremony at the site in Hosur, Tamil Nadu.
The plant that is being constructed will have a capacity of 2 lakh units per year which will eventually grow in the future. For the domestic as well as global market, this factory will produce transmissions and engine. In addition to this, to lower the cost the company will also set up locally based suppliers. Due to the heavy localization, the cost of the cars that will be manufactured will be considerably low which will be plus point taking in consideration of the competition in the Indian market.
Back in January 2017, PSA and CK Birla group had signed a 50:50 joint venture. In this agreement, the two companies have planned to manufacture and sell vehicle components in India under the newly formed company called PSA-AVTEC Powertrain Pvt. Ltd
The Executive Vice-President of India and Pacific Groupe PSA, Emmanuel Delay said that: “The ground-breaking ceremony is a key milestone in the deployment of our strategic plan Push to Pass and it reiterates the commitment of Groupe PSA to India. With the support of our Indian JV partner AVTEC, we are confident of meeting the requirements of our customers by providing them best-in-class products driven by latest technology and manufacturing practices.”
While the CEO and MD of AVTEC, Prabhakar Kadapa commented that: “The JV with Groupe PSA will play a critical role in deepening the Group’s capabilities in the automotive market in India. We are committed to delivering an array of advanced products and setting global benchmarks in reliability and efficiency through this partnership that will help us tap into the huge potential of the Indian automotive industry.”