The PSA Group is planning to return to producing vehicles in India under a new joint venture agreement.

Carlos Tavares, chairman of the managing board, PSA Group.

The deal with CK Birla Group will see PSA vehicles produced in the state of Tamil Nadu under a €100m capital investment in line with PSA’s “Push to Pass” strategic plan and the growth plans of the CK Birla Group in the automotive sector.

Initial manufacturing capacity will be set at about 100,000 vehicles per year and the first vehicles will be produced by 2020.

Carlos Tavares, chairman of the managing board of PSA Group, said: “Benefiting from the strong support of our Indian partner, the CK Birla Group, and a shared vision, this project is consistent with the strong execution of our Push to Pass strategic plan and represents a major step in PSA Group’s worldwide profitable growth in key automotive markets.”