The PSA Group and the CK Birla Group Sign Joint-Venture Agreements to Produce and Sell Vehicles and Components in India by 2020
25 Januar 2017 - 8:52AM
Business Wire
- Indian project in line with PSA
strategic plan “Push to Pass” and the growth plan of the CK Birla
Group in the automotive sector
- “Be Indian in India”: Long term
partnership with an initial investment in capital expenditure close
to €100 million (INR 700 cr) for vehicle and powertrain
manufacturing in the State of Tamil Nadu
- Bring state of the art technology
for an eco-friendly and safe new product range in line with future
industry norms and customers’ expectations
Regulatory News:
The ceremony of signature held today lays the foundation for a
long term partnership between the two Groups and represents a key
milestone in the development of the PSA Group (Paris:UG) in India,
a cornerstone of its strategic growth plan “Push to Pass”. The CK
Birla Group further deepens its capabilities in the auto component
and automotive sector in India.
The partnership entails two joint-venture agreements between the
PSA Group and the CK Birla Group companies. As part of the first
agreement, the PSA Group will hold a majority stake in the
joint-venture company being set-up with HMFCL for the assembly and
distribution of PSA passenger cars in India. As per the second
agreement, a 50:50 joint-venture is being set-up between the PSA
Group and AVTEC Ltd 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 and will be followed by incremental investment to
support a progressive ramp-up of the long term project. The
manufacturing capacity for powertrains will cater to the domestic
market needs and global OEMs. The performance of the industrial
set-up will be supported by a significant level of localization, in
order to reach the necessary cost competitiveness.
This long term partnership will allow both companies to
participate in the growth of the Indian automotive market, which is
expected to reach 8 to 10 million cars by 2025(1) from current 3
million in 2016.
Commenting on the agreements, Carlos Tavares, Chairman of the
Managing Board of PSA Group said: "Benefitting from the strong
support of our Indian partner, the CK Birla Group, and a shared
vision, this project is consistent with the strong execution of our
Push to Pass strategic plan and represents a major step in PSA
Group’s worldwide profitable growth in key automotive markets.”
Speaking to the press in Paris on this momentous occasion, Mr.
CK Birla, Chairman, the CK Birla Group, said “We have embraced
‘Make in India for India and the World’ for several decades and are
among the early adopters of frugal manufacturing in the country. I
am confident that the coming together of the latest
state-of-the-art technology from the PSA Group and the engineering
and manufacturing excellence of the CK Birla Group will benefit the
automotive sector in India.”
(1)Source: SIAM and IHS Markit
About PSA Group
With sales and revenue of €54 billion in 2015, the PSA
Group designs unique automotive experiences and delivers mobility
solutions that provide freedom and enjoyment to customers around
the world. The Group leverages the models from its three brands,
Peugeot, Citroën and DS, as well as a wide array of mobility
services including the Free2Move brand, to meet the evolving needs
and expectations of automobile users. PSA is the European leader in
terms of CO2 emissions, with average emissions of 104.4 grams of
CO2 per kilometre in 2015, and an early innovator in the field of
autonomous and connected cars, with 1.8 million such vehicles
worldwide. It is also involved in financing activities through
Banque PSA Finance and in automotive equipment via Faurecia. Find
out more at groupe-psa.com/en.
About The CK BIRLA Group
The CK Birla Group is a growing US$1.6 billion conglomerate that
has a history of enduring relationships with renowned global
companies. With over 20,000 employees, 27 manufacturing facilities
and a customer base that includes some of the world's best-known
companies, CK Birla Group’s businesses are present across five
continents. The Group’s companies operate in the sectors of
Technology and Automotive, Home and Building, and Healthcare and
Education. The companies are strengthened by common ownership
and shared guiding principles that include a focus on long-term
value, trust-based relationships and philanthropy. For more
information visit us at www.ckbirlagroup.com
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version on businesswire.com: http://www.businesswire.com/news/home/20170124006689/en/
PSA Group Media contactAlain Le Gouguec, +33 1 40 66 58
54alain.legouguec@mpsa.comorCK Birla Media
contactArpit Garg, +91
9999168913arpit.garg@bm.comorVibha Gupta, +91
9810703396v.gupta@ckbirlagroup.com
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