The French manufacturer has communicated today, through a press note, which will be a significant investment of around 100 million euros to produce and market Group vehicles in India. Not going to do it alone, and it is that the French multinational is allied in a double agreement with CK Birla Group. The objective is to provide a cutting-edge technology with eco-friendly products and insurance to this market.
first agreement says that the Group PSA will have a majority stake in this association, being the largest shareholder. The second part provides for the establishment of a joint venture between PSA Group and AVTEC Ltd (belonging to CK Birla Group) to 50% for the manufacturing and supply of the propellants of its products. Both vehicles and the engines will be produced at a plant located in the state of Tamil Nadu, with capacity to manufacture of 100,000 vehicles a year.
says the press release of PSA Group, this association will be allowed to participate to both companies in the growth of the automotive market of India, where currently data of 3 million vehicles, and whose studies reveal that in 2025 it will increase up to 8 or 10 million cars. With these data we can intuit that the work should not be too complicated for the manufacturer, since the growth is going to be very noticeable in this market.
Carlos Tavares, President of the Board of Directors of the PSA Group, commented during the ceremony of the agreement that: “taking advantage of the strong support of our indian partner, the Group, CK Birla, and a shared vision, this project coincides with our strategic plan Push to Pass and represents an important step in the global growth of PES Group in the key markets for the automotive”. If everything follows their plans, by 2020, will launch their sales in the indian market.