PSA Group and CK Birla Group sign an agree­ment

Commercial Vehicle - - NEWS -

The PSA Group and the CK Birla Group have signed a jointven­ture agree­ment to pro­duce and sell ve­hi­cles and com­po­nents in In­dia by 2020. The France-based PSA Group is the owner of Peu­geot brand of ve­hi­cles, which in­clude light com­mer­cial ve­hi­cles like the Bip­per van, Part­ner van, Boxer van, and the Ex­pert van. The CK Birla Group is the pro­ducer of Hin­dus­tan brand of cars and erst­while light com­mer­cial ve­hi­cles like the Trekker and the Win­ner in In­dia. The Avtec sub­sidiary of CK Birla Groups into the man­u­fac­ture of en­gines to CV mak­ers like Daim­ler In­dia Com­mer­cial Ve­hi­cles. From a CV point of view the agree­ment as­sumes im­por­tance be­cause the part­ner­ship en­tails two joint-ven­ture agree­ments. As part of the first agree­ment, the PSA Group will hold a ma­jor­ity stake in the joint-ven­ture com­pany be­ing set-up with Hin­dus­tan Mo­tor Fi­nance Cor­po­ra­tion Lim­ited (HMFCL) to as­sem­ble and dis­trib­ute PSA pas­sen­ger cars in In­dia. The sec­ond agree­ment en­tails the set­ting up of a 50:50 joint-ven­ture be­tween the PSA Group and Avtec for man­u­fac­ture and sup­ply of pow­er­trains. The man­u­fac­tur­ing sites for both ve­hi­cle assem­bly and pow­er­trains will be based in the state of Tamil Nadu. The ini­tial man­u­fac­tur­ing ca­pac­ity will be set at about 100,000 ve­hi­cles per year. The man­u­fac­tur­ing ca­pac­ity for pow­er­trains will cater to the do­mes­tic mar­ket needs and global OEMs.

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