Construction on Peugeot Group’s powertrain plant begins

Construction of the PSA-AVTEC powertrain plant has begun with a ground-breaking ceremony held at the site. The manufacturing facility is being built in Hosur, Tamil Nadu.

The plant will have an initial manufacturing capacity of 2,00,000 units per year, however there are plans to ramp up the capacity in the future. The factory will produce engines and transmissions for the domestic market as well global OEMs. According to the company, a local supplier base will also be set up in order to lower costs.

The French automotive conglomerate PSA Group and the CK Birla Group had signed a 50:50 joint-venture back in January 2017. As part of the agreement, the two companies plan to manufacture and sell vehicle components in India under the newly formed company - PSA-AVTEC Powertrain Pvt. Ltd.