PSA Launches Transmission Venture in India

PSA Group has partnered with India powertrain supplier Avtec Ltd. to build transmissions at rates as great as 200,000 per year.

The 50:50 venture plans to open a factory in Hosur in 2019, initially to make 5- and 6-speed manual transmissions that are compatible with Euro VI-compliant engines. The partners say the new company will combine PSA’s advanced powertrain technologies with Avtec’s engineering and manufacturing expertise.

The venture will supply transmissions to a separate carmaking partnership formed in January by PSA and Hindustan Motors Ltd. Avtec and Hindustan both are subsidiaries of India’s CK Birla Group industrial conglomerate.

The PSA-Avtec venture aims to eventually use its Hosur factory to supply other undisclosed companies, including those in overseas markets. Avtec’s existing customer base includes Caterpillar, Daimler, Ford, General Motors, Jaguar, Renault-Nissan and Tata.