Chennai, Nov 22 (IANS): The Indo-French automotive joint venture PSA AVTEC Powertrain Pvt Ltd on Thursday inaugurated its powertrain and engine plant at Hosur, Tamil Nadu.

The equal joint venture company PSA AVTEC Powertrain is promoted by AVTEC Ltd of India's CK Birla group and Groupe PSA of France.

In a statement issued here by the two promoters of PSA AVTEC, the initial manufacturing capacity of the greenfield plant will be about 300,000 units per year for the transmissions and 200,000 units for the BS-VI compliant engines.

The plant will manufacture gearboxes in Phase-I to support both the India project as well as Groupe PSA needs. The peak investment in this manufacturing set-up would go up to Rs 600 crore and will generate a direct employment for around 800 people, the statement said.

"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," Carlos Tavares, Chariman, Groupe PSA, was quoted as saying in the statement.

"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," C.K. Birla, Chairman of the CK Birla group, was quoted as saying in the statement.