The French manufacturer announced today, via a press release, that will be a important investment of around 100 million euros to produce and commercialize vehicles of the group in the India. It will not do so only, and is the French multinational allies are in a double deal with CK Birla Group. The objective is to offer a cutting-edge technology with ecological and safe products for this market.
The first agreement says that the group PSA will have a majority stake in the partnership, being the largest shareholder. The second part provides for the establishment of a joint venture between Grupo PSA and AVTEC Ltd (belonging to CK Birla Group) to 50% for the manufacturing and supply of the propellers of their products. Both vehicles and engines will be produced at a plant located in the State of Tamil Nadu with a capacity to produce 100,000 vehicles a year.
Says the PSA Group press release, this partnership will allow both companies entering the India automotive market growth, where currently dating from 3 million vehicles and whose studies reveal that by 2025 they will increase up to 8 or 10 million cars. With these data you can guess that the work should not be too complicated for the manufacturer, since growth is going to be very noticeable in this market.
Carlos Tavares, Chairman of the Council of administration of the Group PSA, commented during the Act of agreement: “to benefit from the strong support of our Indian partner, the CK Birla Group, and a shared vision, this project coincides with our strategic plan to Push to Pass and represents an important step in the global growth of the PSA Group in key markets for automotive“. If everything follows their plans, by 2020 it will start its marketing in the Indian market.