PSA group, CK Birla join hands to make cars in India

The partners will jointly invest around Rs 700 crore (100 million euros) in Tamil Nadu. The vehicles will be manufactured at Hindustan Motors facility.

Published: 26th January 2017 12:50 AM  |   Last Updated: 26th January 2017 06:58 AM   |  A+A-

By Express News Service

CHENNAI: PSA Group and the CK Birla Group on Wednesday signed a joint venture agreement to produce and sell vehicles and components in India by 2020. 

The partners will jointly invest around Rs 700 crore (100 million euros) in Tamil Nadu. The vehicles will be manufactured at Hindustan Motors facility, which is now producing Japanese auto major Mitsubishi’s vehicles.

The partnership 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 HMFCL (Hindustan Motor Finance Corporation Ltd) for the assembly and distribution of PSA passenger cars in India,” the two firms said in a joint statement.

As per the second agreement, a 50:50 joint-venture is being set-up between the PSA Group and AVTEC Ltd for manufacture and supply of powertrains. “The manufacturing sites for both vehicle assembly and powertrains will be based in the state of Tamil Nadu, it added.

“Benefiting 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,” PSA Group Chairman Carlos Tavares said.

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Maruti Suzuki Q3 net zooms 47.46%

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