PSA Group and CK Birla Group sign an agreement
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.