PSA Group, a French carmaker producing vehicles under the brands of Peugeot, Citroen and DS, signed an agreement with Indian Birla Group on the establishment of joint enterprises engaged in manufacturing and sale of cars and vehicle components in India.
According to PSA Group, initial volume of investments will total approximately €100 million, which will be allocated in production of automobiles and engines in the Indian state of Tamil Nadu.
The partnership provides for two agreements between the companies. One of the documents envisages that PSA Group receives a majority stake in a joint enterprise set up with HMFCL, a subsidiary of Birla Group, and engaged in assembly and distribution of PSA cars in India.
