Peugeot to return to India with Birla Group manufacturing deal

by SpeedLux
ck birla group logo

PSA Group is coming back to India by 2020, the French automaker stated on Wednesday after revealing a modest production investment with CK Birla Group, the New Delhi-based corporation.

PSA, maker of Peugeot, Citroen and DS automobiles, stated it will construct automobiles in Tamil Nadu under a preliminary 100 million-euro ($107 million) joint venture investment with Birla-owned HMFCL, with a yearly production capacity of 100,000 automobiles.

A second deal with AVTEC will develop engines and transmissions for PSA and potentially for other makers, the groups stated in a joint statement. AVTEC is another CK Birla company,

The deals represent a “significant step in PSA Group’s global profitable growth”, Chief Executive Carlos Tavares stated. The mid-sized French maker is pressing a global expansion to decrease its dependence on European sales.

India’s fast-growing market, which broadened 7 percent to 2.96 million cars in 2016, has shown tough to split for lots of foreign automakers. The Peugeot brand was last seen in the late 1990s, when a former joint venture collapsed.

Suzuki’s inexpensive Maruti brand dominates in India with a 47 percent market share, however PSA’s domestic competing Renault has made inroads recently with the penny-wise Duster SUV and its smaller Kwid sibling.

PSA struck its collaboration with the CK Birla Group, with sales of around $1.6 billion, after talks with other potential partners. As per local press reports, those consisted of Jaguar Land Rover parent Tata Motors along with former Renault ally Mahindra & Mahindra.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More