New Delhi: French carmaker PSA and AVTEC announced on Thursday the launch of first Powertrain JV greenfield plant in Hosur, Tamil Nadu. 

The facility is expected to manufacture and supply powertrain for the global and domestic automotive market along the lines with the future industry norms and customer expectations. 

The inauguration of the plant was attended by Carlos Tavares, Chairman of the Managing Board, Groupe PSA and CK Birla, Chairman, the CK Birla Group. The manufacturing unit was set up in less than 2 years. 

The plant will initially manufacture about 300,000 units per year for the transmissions and 200,000 units for the BS-VI compliant engines. 

The plant, which has got an investment of Rs 600 crore, will be engaged in the manufacturing of next generation gearboxes and engines in Phase I to support both the India project as well as supplying Groupe PSA needs. The plant is expected to generate direct employment for 800 people. 

The performance of the industrial set-up will be supported by a significant level of localisation, in order to reach the necessary cost competitiveness

Carlos Tavares, chairman of the Managing Board Groupe PSA, said: “We want to be Indian in India. With this inauguration, we have taken another critical step towards the execution of our Push to Pass strategic plan and commitment towards the Indian customers. The quality of the relation with our partner, the CK Birla Group, is paramount to the success of our common project, with the creation of a complete eco-system in India.”

Speaking at the inauguration, CK Birla said: “We have always striven to evolve with the ever-changing needs of our customers and partners. This partnership that brings together latest technology from Groupe PSA and the manufacturing excellence of the CK Birla Group is a step in the same direction. We are confident that this new plant will create long-term value and fulfil future market needs better.”

The joint venture, which will bring together the Groupe PSA's state-of-the-art technology and the CK Birla Group's engineering and manufacturing expertise was announced in January, this year.