Leading European auto maker Groupe PSA starts assembling cars in India
Europe’s leading car maker, Groupe PSA has started assembling cars at its plant near Chennai. The first product get off the assembly line and likely to hit the market early next year is the company’s premium SUV C5 Aircross.
In 2017, PSA Groupe announced a partnership with the CK Birla Group to re-enter the Indian market. The company decided to invest about Rs 2,400 crore in Tamil Nadu.
Eric Apode, senior vice-president at PCA Motors Pvt Ltd India, said today that the company held a ceremony at the its Thiruvallur plant. He added that the C5 Aircross is the firm’s first car produced locally in India, ans said that the development was a great milestone for PCA Motors.
The Citroen C5 Aircross sports utility vehicle (SUV) is expected to be launched during the first quarter of 2021.
Groupe PSA will kick-start its journey with a premium SUV. The company is working on a new platform and India will be the first market to have products emanating from it.
At least one car from this platform will be launched for the next 4-5 years with up to 90 per cent localisation, catering mainly to the Indian market.
The Thiruvallur plant is part of the JV floated by PSA Groupe and the CK Birla Group. It will have a capacity of 100,000 units a year in the first phase. The partners will also make Powertrains from their PSA-AVTEC Powertrain JV at Hosur.
It will be the second innings for PSA in India. The company had entered a partnership with the erstwhile Premier family for a JV, Peugeot PAL India, but pulled out in 2001. In 2017, PSA Groupe announced a partnership with CK Birla Group to re-enter the Indian market.
