Peugeot & Birla groups set up engine & gearbox plant in Hosur

Groupe PSA (Peugeot) and Avtec Ltd (a CK Birla Group company) have inaugurated a greenfield plant in Hosur, Tamil Nadu. The facility will manufacture and supply powertrains for the global and domestic automotive market. The construction of the facility started in November 2017.

The plant is owned by PSA Avtec Powertrain Pvt. Ltd. - a 50:50 joint-venture created in 2017 between Groupe PSA and Avtec. The initial manufacturing capacity of this plant will be 3,00,000 units per year for transmissions and 2,00,000 units for BS-VI compliant engines. The plant will manufacture gearboxes in phase 1 to support the Indian as well as international markets.

The company claims that the peak investment in this manufacturing setup would go up to Rs. 600 crore and is expected to generate a direct employment of around 800 people. The company also claims that it will employ a significant level of localization in an attempt to keep costs competitive.