PSA has chosen Punch Powertrain to supply e-DCT systems by 2022, as part of the automaker's electrification push.

The electrified dual clutch transmission - hybrid DT2 – with 48V motor will be used in mild hybrid EVs.

The two companies are talking about manufacturing the transmission at a PSA plant and also considering extending the partnership.

The transmission has a patented dual clutch design with fewer components and is lighter and more compact than alternatives.

Punch Powertrain recently acquired power electronics expert Apojee.

"The agreement with Groupe PSA is a major step for Punch Powertrain and is in line with its strategic vision of becoming a global automotive supplier," it said in a statement.

"To secure sustainable and continuous growth, the company has focused on two objectives: expanding its product portfolio and establishing a worldwide customer base in global markets.

"With Groupe PSA as its first large European customer, Punch Powertrain is meeting its second objective: securing its position in Europe and expanding its global footprint."

An overview of Punch Powertrain's recent strategic developments can be found here.