Paris — PSA Group will return to the Indian market by 2020, the French car maker said on Wednesday, unveiling a modest production deal with New Delhi-based CK Birla Group. PSA, which halted its last Indian production in 1997, will invest €100m with Birla-owned Hindustan Motors to build cars in the state of Tamil Nadu. A second joint venture with AVTEC, another Birla company, would produce engines and transmissions for PSA and potentially for other manufacturers, the groups said in a statement. The plans represented a "major step in PSA Group’s worldwide profitable growth", CE Carlos Tavares said. The Paris-based manufacturer is pushing an international expansion to reduce its dependence on European sales. India’s fast-growing market, which expanded 7% to 2.96-million cars last year, has proved tough to crack for many foreign car makers. An earlier attempt by the Peugeot brand ended with the collapse of its local joint venture in the late 1990s. PSA said its return to India was delib...
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