PSA Group and Avtec inaugurate new powertrain plant in Hosur

Greenfield plant goes on stream; initial capacity of about 300,000 units per year for transmissions in Phase 1 and 200,000 units for the BS-VI-compliant engines in Phase 2

By Autocar Professional Bureau

22 Nov 2018

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L-R: CK Birla, chairman, the CK Birla Group and Carlos Tavares, chairman, Groupe PSA, inaugurate the new Avtec powertrain plant.

Groupe PSA and Avtec Ltd, a CK Birla Group company, today inaugurated their greenfield plant in Hosur, Tamil Nadu. This marks the formal start of the industrial setup of this facility, which will manufacture and supply technologically advanced and eco-friendly powertrains for the global and domestic automotive markets. The inauguration was done by Carlos Tavares, chairman of the managing board, Groupe PSA and CK Birla, Chairman, the CK Birla Group.

The initial manufacturing capacity of this state-of-the-art plant will be about 300,000 units per year for the transmissions and 200,000 units of BS-VI-compliant engines. The manufacturing set up has been completed in a record time of less than 2 years. The plant will manufacture gearboxes in Phase I to support both the India project as well as supplying Groupe PSA needs.

The peak investment in this manufacturing set up would go up to Rs 600 crore (around 73m euros) and will generate a direct employment of around 800 people. Additionally, the performance of the industrial set-up will be supported by a significant level of localisation to reach the necessary cost competitiveness.

Groupe PSA’s chairman Carlos Tavares said, “We want to be Indian in India. With this inauguration, we have taken another critical step towards the execution of our Push to Pass strategic plan and commitment towards the Indian customers. The quality of the relation with our partner, the CK Birla Group, is paramount to the success of our common project, with the creation of a complete eco-system in India.”

Commenting on the development, CK Birla, chairman, the CK Birla Group said, “We have always striven to evolve with the ever-changing needs of our customers and partners. This partnership that brings together latest technology from Groupe PSA and the manufacturing excellence of the CK Birla Group is a step in the same direction. We are confident that this new plant will create long-term value and fulfil future market needs better.”

The plant is owned by PSA AVTEC Powertrain, a 50:50 JV set up in 2017 between Groupe PSA, France and AVTEC. It benefits from Groupe PSA latest technology and the CK Birla Group’s engineering and manufacturing excellence.