The PSA Group of France, which has five car brands (Peugeot, Citroën, DS, Opel and Vauxhall), and Avtec Ltd held a ground-breaking ceremony today for their upcoming plant in Hosur, Tamil Nadu that will focus on manufacturing and supply of powertrains. The ceremony officially marked the inception of PSA-Avtec Powertrain, a 50:50 joint venture between Groupe PSA and Avtec. The ceremony was attended by the new entity’s board of directors.

With initial manufacturing capacity at about 200,000 units per year, the plant will further receive incremental investment to support a progressive ramp-up of the long term project. The plant will be engaged in the manufacturing of next-generation gearboxes and engines. 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 localisation, in order to reach the necessary cost competitiveness.

Emmanuel Delay, executive vice-president India & Pacific, Groupe PSA, said: “The ground-breaking ceremony is a key milestone in the deployment of our strategic ‘Push to Pass’ plan 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.”

Commenting on the development, Prabhakar Kadapa, CEO and MD, Avtec, said: "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.”

This joint venture that brought Groupe PSA state-of-the-art technology and the CK Birla Group’s engineering and manufacturing excellence was announced in January this year.