PSA-Birla JV

France’s #PSA Group (Bourse: UG) has signed a Joint-Venture Agreements #CK Birla Group to Produce and Sell Vehicles and Components in India by 2020.

The agreements, to “Be Indian in India”, will make an initial investment close to €100 million (Rs.700 crore) for vehicle and powertrain manufacturing facilities in the State of Tamil Nadu

The partnership, signed on Jan 25, 2017, entails two joint-venture agreements between the PSA Group and the CK Birla Group companies.

As part of the first agreement, the PSA Group will hold a majority stake in the joint-venture company being set-up with Birla’s #HMFCL for the assembly and distribution of PSA passenger cars in India.

As per the second agreement, a 50:50 joint-venture is being set-up between the PSA Group and Birla’s #AVTEC Ltd for manufacture and supply of powertrains.

The initial manufacturing capacity will be set at about 100,000 vehicles per year and will be followed by incremental investment to support a progressive ramp-up of the long term project.

The manufacturing capacity for powertrains will cater to the domestic market needs and global OEMs.

The performance of the industrial set-up will be supported by a significant level of localization, in order to reach the necessary cost competitiveness.

Commenting on the agreements, #Carlos Tavares, Chairman of the Managing Board of PSA Group said: “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.”

Addressing the press in Paris, #CK Birla, Chairman, the CK Birla Group, said “We have embraced ‘Make in India for India and the World’ for several decades and are among the early adopters of frugal manufacturing in the country.

“I am confident that the coming together of the latest state-of-the-art technology from the PSA Group and the engineering and manufacturing excellence of the CK Birla Group will benefit the automotive sector in India,” he said.

PSA Group produces global models #Peugeot, #Citroën and #DS. fii-news.com