The French carmaker PSA Group which includes such well-known brands as Peugeot, Citroën, DS, signed an agreement about creation of joint businesses with Indian colleagues from CK Birla Group. The companies intend to produce cars for sale in the Indian markets.
In the first stage it was invested about € 100 million, which will be used for the production of cars and engines in the Indian state of Tamil Nadu.
Under the terms of the agreement, PSA Group will receive a majority packet in joint business with Birla Group HMFCL subsidiary company. The new firm will be engaged in production and sale of the PSA cars in India. It is expected that about 100 000 new machines will be issued in the course. The start of sales is expected near by 2020. Together with other Indian company, Avtec Ltd, French intend to start the assembly of engines.
The car market of India, the population of which approaches a mark of 1,4 billion people, is growing now and at the end of last year constituted 3 million units. PSA Group emphasizes that, according to forecasts, by 2025 India will sell about 8-10 million cars annually. French should fight for the Indian consumer with the largest company of the region — Maruti-Suzuki.
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