Groupe PSA To Start Manufacturing Transmissions, BSVI Engines In India Soon

The joint venture will be making powertrains for both domestic and export purposes

• The industrial set up is a 50:50 JV between Groupe PSA and CK Birla’s AVTEC

• The plant will manufacture and supply transmissions and engines to both domestic and global markets

• Groupe PSA owns brands such as Peugeot, Citroën, DS, Opel and Vauxhall

• Estimated plant capacity is of 3 lakh transmission units and 2 lakh BSVI engines annually

• Part of Groupe PSA preparing to enter the Indian automotive market by 2020

Groupe PSA and AVTEC, a CK Birla Group company, inaugurated their manufacturing plant in Hosur, Tamil Nadu on 22 November, 2018. The site will soon begin manufacturing powertrains for global and domestic markets as part of a 50:50 joint venture between the two companies.

The initial manufacturing capacity of the new plant has been estimated at three lakh transmissions and two lakh BS-VI compliant engines per year. The former will be part of Phase I to support their India project while also supplying to meet Groupe PSA requirements. This is all part of PSA group’s plans to enter the Indian automotive market by 2020. The peak investment in this manufacturing plant owned by PSA AVTEC Powertrain Pvt Ltd, the name of the joint venture, is estimated to go up to Rs 600 crore. The second JV agreement between the two corporations signed in 2017 involves the Hindustan Motors plant in Chennai, which will be utilised to manufacture cars when the brand launches itself in India.

At the 2018 Paris Motor Show, PSA showcased its new Common Modular Platform architecture which might get localised in India. This new platform will underpin future PSA models such as midsize and premium hatchbacks, compact and midsize sedans along with compact SUVs. The cars built on the CMP platform will be powered by the Groupe’s new 1.2-litre 3-cylinder turbo-petrol engine and the 1.5-litre Blue HDi diesel engine. These are the engines that are likely to be manufactured at the new plant in Hosur. Moreover, they also conform to the existing Indian tax breaks for sub-4m cars that PSA might bring to India.

Read more: PSA Details CMP Platform, Likely To Be Localised In India