Groupe PSA and AVTEC inaugurate powertrain plant in India

Groupe PSA and AVTEC (a CK Birla Group company) started the industrial set up of their first powertrain JV plant in India in Hosur, Tamil Nadu today. This plant will manufacture and supply transmissions and engines for domestic and export markets.

The media is abuzz with Kia and MG’s India entry, but there’s another brand that will set foot in our market later this decade, a brand from Groupe PSA. The French auto conglomerate will re-enter our market with either Peugeot, a brand that was existent during the 1990s, or Citroen. In markets where the brands co-exist, the former is positioned as the premium one while the latter stands for affordable vehicles.

The new plant will have an initial manufacturing capacity of about 3,00,000 units/year for the transmissions and 2,00,000 units/year for the engines. The engines will comply with the BS-VI emission norms that come into effect on 1 April, 2020. Manufacturing of the transmissions will begin in Phase I and manufacturing of the engines will commence in Phase II.

Groupe PSA was to roll out new locally manufactured cars in India in April 2020, but reports say that it has postponed the SOP to April 2021. However, it will likely establish the brand in the meantime with the launch of models imported in CKD kits, the assembly of which will also take place in Tamil Nadu. While in the powertrain plant Groupe PSA and CK Birla Groupe have an equal stake, in the vehicle assembly plant the former will have a higher stake.

Also See: Citroen C3 Aircross showcased at IAA 2017

It is said that Groupe PSA will enter the Indian market with the launch of the Citroen C5 Aircross in 2019. The locally manufactured portfolio initially will likely comprise a hatchback, a sedan and an SUV - all falling in the B-segment and sharing the new Common Modular Platform (CMP) co-developed with Dongfeng Motors, the company's strategic partner from China.