April 20, 2024

  • Daily Motion

Groupe PSA To Source ₹15,000 Cr Auto Parts from India

Groupe PSA

Groupe PSA, a French multinational automobile manufacturer plans to source the €2 billion (₹15,000 crore) worth components from India in three to five years.

Groupe PSA To Source ₹15,000 crore Auto Parts from India

The company manufactures under the brand names Peugeot, Citroen, and Vauxhall. The components it is planning to take from India include the engines, gearboxes and electronic parts to use it I their global business.

Company Will Source From 250 Indian Suppliers

The French carmaker said that it will take at least 5% of its €42 billion global sourcing from India. The Company has given this sourcing opportunity to over 250 Indian suppliers in the month.

Company’s Purchasing Office Is In Chennai 

Groupe PSA has set up a purchasing office in Chennai to give a platform for the Indian suppliers to sell their products for the company’s global operations.

Purchasing and Supplier Quality, Executive Vice-President Says 

Groupe PSA, global purchasing and supplier quality, executive vice-president Michelle Wen said India is an important part of future global sourcing for PSA.

“As part of our ‘Push to Pass’ plan for 2021, we have a plan of growing our business from overseas markets to over 50%, including sourcing, and India can be an important contributor to this. I would say 5-10% (of global supply) is feasible to source from India in the next 3-5 years. But I hope we could do more,” she added.

Groupe PSA Joint Venture With CK Birla Company Avtec

 Groupe PSA has a joint venture with the CK Birla Company Avtec which is of powertrain manufacturing plant in Tamil Nadu opened in November. The plant holds the capacity annually is 300,000 transmission systems and 200,000 BS-VI compliant engines for domestic and global markets.

“Definitely we are expecting India to be more competitive, especially in the double-digit range, meeting our global standards. The total landed cost is important. Parts may be attractive, but suppliers should be able to deliver quality parts and manage packaging and logistics efficiently to ensure good cost,” Wen said.


The Groupe PSA has sourced about 25 million euros of parts from India in 2018. The exports include gearboxes which will start from few months. The value of parts sourced from India will increase in the next 2 to 3 years.


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