PSA, CK Birla sign pact to make cars in Tamil Nadu

Partners to invest around Rs 700 crore in the state

Birla, PSA Group, cars, automobile, Tamil Nadu

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Carlos Tavares, Chairman of the Managing Board of PSA Group and CK Birla, Chairman of CK Birla Group, addressing the media at Paris on Wednesday.

T E Narasimhan Chennai

Last Updated : Jan 26 2017 | 12:05 AM IST

PSA Group, the French automobile major which makes Peugeot and Citroen cars, is re-entering India by signing an agreement with the CK Birla Group.

The two partners will invest around Rs 700 crore in Tamil Nadu to manufacture cars and power trains, by 2020.

The cars will be made at Hindustan Motors' facility at Tiruvallur, a suburb of this city, where Mitsubishi's Pajero Sport is being currently made; the latter will continue to be.

Of the total investment, two-thirds will come from PSA and the rest from the CK Birla Group.

PSA announced its India comeback in 2011 but

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