Mumbai: Groupe
PSA, the French automobile manufacturer with brands including
Peugeot, Citroën and Vauxhall, plans to source components worth €2 billion (Rs 15,000 crore) from India in the next three to five years.
The components include critical parts such as engines, gearboxes and electronic parts for its global operations.
The European car maker, which announced its India rollout plans earlier in the month, aims to source at least 5% of its €42 billion global sourcing from India. Groupe PSA shared this potential business opportunity with over 250 Indian suppliers earlier in the month.
The company has set up a purchasing office in Chennai to bring on board Indian suppliers for its global operations. According to Michelle Wen, executive vice-president, global purchasing and supplier quality at
Groupe PSA, 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 told ET.
Wen said PSA will source powertrains, gearboxes, chassis components and mechanical and electronic parts, among others. The company may also look at procuring critical equipment for its electric vehicles from India.