French luxury car maker PSA, maker of the iconic Peugeot, Citroen cars, and India’s CK Birla Group will form two JVs to build and sell cars in India. PSA announced Wednesday that that it will be investing Rs 700 crores in Chennai for manufacturing vehicles and auto components. It has signed two agreements with Indian conglomerate CK Birla for both vehicle assembly and powertrains and hopes to launch as many as 1 lakh cars a year for the Indian market. The iconic Peugeot cars will be made from an existing facility in Tiruvallur near Chennai, which is currently being used to assemble Mitsubishi car models and Isuzu commercial vehicles.
