Saar: Located in Hosur, Tamil Nadu, the plant will have an initial annual capacity to produce 3 lakh transmissions units and 2 lakh units of BS6-compliant engines.

We all are well aware that Groupe PSA, the French automotive giant, is gunning to start its third innings in India. Last year, it joined forces with CK Birla Group to manufacture vehicles locally and also bought the rights to the Ambassador marque from Hindustan Motors. The latest development in Groupe PSA’s re-entry into India comes from Hosur, Tamil Nadu. The town is home to a powertrain manufacturing facility which was inaugurated by Carlos Tavares, Chairman of the managing board, Groupe PSA, and CK Birla, chairman, CK Birla Group.

The facility is the product of a 50:50 joint-venture (JV) created last year between the French automotive group and AVTEC, a CK Birla Group Company. The JV helped in christening the production plant as PSA AVTEC Powertrain Pvt. Ltd.

Here’s what Tavares said, in an official release, about the new beginnings in India:

“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 relationship 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.”

Birla had his own set of comments to add. He said:

“We have always striven to evolve with the ever-changing needs of our customers and partners. This partnership that brings together the 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.”

After the announcement on a JV between the two conglomerates last year, this is the single most important development that has taken place. The plant in Hosur will produce powertrains for domestic as well as international markets. Initially, the facility will have an annual capacity to produce 3 lakh transmission units and 2 lakh BS VI-compliant engines. In phase 1, the facility will produce gearboxes to support both the Indian market and Groupe PSA needs for other markets around the globe.

The plant was set up in less than two years. A total investment of Rs 600 crore was injected into the facility. As per Groupe PSA, the powertrain manufacturing plant will generate direct employment of approximately 800 people.