PSA-Avtec enter TN with new manufacturing plant

French auto major PSA and home-grown Avtec Ltd on Friday hosted a ground-breaking ceremony for their plant in Hosur, Tamil Nadu that will focus on manufacturing and supply of power-trains.

By :  migrator
Update: 2017-11-10 23:25 GMT
Representative Image

Chennai

The ceremony, attended by the new entity’s Board of Directors, officially marked the inception of PSA-Avtec Power-train Pvt Ltd, a 50:50 joint-venture between Groupe PSA and the CK Birla Group company Avtec.

This JV was announced in January this year.

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 capacity for power-trains 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, to reach the necessary cost competitiveness.

Emmanuel Delay, EVP, India & Pacific, Groupe PSA, said: “This is a key milestone in the deployment of our strategic plan Push to Pass and it reiterates Groupe PSA commitment to India.

Prabhakar Kadapa, CEO & MD, Avtec Ltd, said: “The JV with Groupe PSA will play a critical role in deepening the Group’s capabilities in the automotive market in India.”

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