Team-BHP - 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.

Peugeot & Birla groups set up engine & gearbox plant in Hosur-spk_7670.jpg

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.

Peugeot & Birla groups set up engine & gearbox plant in Hosur-spk_7663.jpg

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.

Peugeot & Birla groups set up engine & gearbox plant in Hosur-spk_7664.jpg

Link to Team-BHP News article

Best wishes to them. I hope they make good quality products.

I had bad experiences with Avtec's automatic transmission used on the forklifts. Frequent failures, very costly repairs and spares not available timely.

After spending a lot of downtime and cost (in quite a few lakhs) without any explanation of cause of failure, finally I myself studied the transmission and diagnosed the issue. I then went to Avtec (Hosur) on my own and explained them my diagnosis. Visit was cordial. Immediately after the visit, I also sent them this explanation by email since they requested so.

And then they just stopped communicating with me. Emails as well as the phone calls went unanswered.:Frustrati

Then I myself figured out a solution and implemented the same by spending Rs. 300. Since then I did not encounter those failures again.

But their approach of shutting down the communication shocked me, especially after a cordial visit. And there were no efforts to solve my problems, which were experienced by other buyers too.

I will NOT buy a vehicle with Avtec transmission again.

Sorry for a negative remark Avtec and CK Birla group but I had to mention this because of the way you treated a customer and because you were deliberately not accessible.

Bit weird, no? I don't remember any brand setting up an engine factory first, and then their car factory. Sharing the full press release below in case someone wants to add another thought or two.

ChiragM has a good point though. He says its probably part of their plan to have maximum localisation when they launch.

But CK Birla :Frustrati:Frustrati. What a terrible choice of partner. They are the same incompetent guys who drove Hindustan Motors into the ground and ruined Mitsubishi in India too.

Quote:

Groupe PSA & the CK Birla Group inaugurate their first Powertrain JV plant in India
• Start of industrial set up of the greenfield plant in Hosur, Tamil Nadu
• Initial capacity of about 300,000 units per year for the transmissions in Phase 1 and 200,000 units for the BS-VI compliant engines in Phase 2

National, November 22, 2018: Groupe PSA and AVTEC Ltd (a CK Birla Group Co.) today hosted the inauguration ceremony of their greenfield plant in Hosur, Tamil Nadu. This marks the formal start of industrial set up of this site, which will manufacture and supply technologically advanced and eco-friendly powertrain for the Global and Domestic Automotive market, in-line with the future industry norms and customer expectations. The historic ceremony has been graced by Mr. Carlos Tavares, Chairman of the Managing Board, Groupe PSA and Mr. CK Birla, Chairman, the CK Birla Group.

The initial manufacturing capacity of this state-of-the-art plant will be about 300,000 units per year for the transmissions and 200,000 units for the BS-VI compliant engines. The manufacturing set up has been completed in a record time of less than 2 years. The plant will manufacture gearboxes in Phase I to support both the India project as well as supplying Groupe PSA needs. The peak investment in this manufacturing set up would go up to Rs. 600 Crore (circa 73 M€) and will generate a direct employment of around 800 people. Additionally, the performance of the industrial set-up will be supported by a significant level of localization to reach the necessary cost competitiveness.

Mr. 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.”

Commenting on the development, Mr. CK Birla, Chairman, the CK Birla Group 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 plant is owned by PSA AVTEC Powertrain Pvt. Ltd., a 50:50 joint-venture created in 2017 between Groupe PSA, France and AVTEC. It benefits from Groupe PSA latest technology and the CK Birla Group’s engineering and manufacturing excellence.

About Groupe PSA
Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all customer expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall and provides a wide array of mobility and smart services under the Free2Move brand. Its ‘Push to Pass’ strategic plan represents a first step towards the achievement of the Group’s vision to be “a global carmaker with cutting-edge efficiency and a leading mobility provider sustaining lifetime customer relationships”. An early innovator in the field of autonomous and connected cars, Groupe PSA is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia..

About The CK BIRLA Group
The CK Birla Group is a growing US$1.8 billion conglomerate that has a history of enduring relationships with renowned global companies. With over 20,000 employees, 41 manufacturing facilities and a customer base that includes some of the world's best-known companies, the CK Birla Group’s businesses are present across five continents. The Group’s companies operate in the sectors of Technology, Automotive, Home and Building, Infrastructure, Healthcare and Education. The companies are strengthened by shared guiding principles that include a focus on long-term value, trust-based relationships and philanthropy.

For more information on PSA AVTEC Powertrain Pvt. Ltd., pl visit www.psa-avtec.com