Ashok Leyland and Siemens VDO ink JV

By Staff
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Google Oneindia News

New Delhi, July 16: Ashok Leyland Ltd today said that it has signed an agreement for a joint venture (JV) with Siemens VDO Automotive AG, Germany, to design, develop and adapt infotronics products and services for the transportation sector.

The agreement was signed in Chennai today by Ashok Leyland Managing Director R Seshasayee and Siemens VDO CEO, Global Commercial Vehicles Business Christoph Maximilian Eisenhardt, the statement said.

The equity of the JV Company will be held at a ratio of 50:50 between the Ashok Leyland and Siemens VDO.

The JV will develop electronic components and software such as instrument cluster applications, cockpit electronics and various control units for both commercial vehicles and passenger cars.

While this JV is expected to cater to the requirements of the Ashok Leylands vehicles, it will actively pursue opportunities with other vehicle manufacturer in India and abroad, added the statement.

''We believe that through innovation it is possible to design and develop new products to address emerging opportunities in developed and developing markets each of which having its particular need'' said Mr Seshasayee.

Our customer insight, engineering capabilities and competitiveness together with the technology strengths of a global leader such as Siemens VDO will be a unique combination that will fuel the growth of this JV, he added.

The JV is being launched due to the increasing content of IT, electronics and communications in vehicles the world over - a trend being witnessed in the Indian passenger car segment also.

Infotronics content is expected to grow significantly in the Indian Commercial Vehicle segment, following fuel introduction of BSIII compliant vehicles with electronically controlled fuel injection.

Mr Seshasayee said both Ashok Leyland and Siemens VDO had been working as consortium members in Chennai Metropolitan Bus Terminus Project to provide state-of-the-art telematics solutions for the Tamil Nadu State Transport undertaking. This project was expected to be launched later this year on a pilot basis at Koyembedu Bus Terminus and the technology product and services developed had the potential to become the standard platform for all state transport undertakings in the country.

Mr Seshasayee also pointed the JV would accelerate the development of next generation telematics solutions for the market.

"Our customer insight, engineering capabilities and competitiveness together with the technology strengths of a global leader such as Siemens VDO will be a unique combination that will fuel the growth of this JV," he said.

Siemens VDO Global Commercial Vehicle Business CEO Eisenhardt said "it is our aim to focus our joint venture's development activities on the special requirements of the market.

"For Siemens VDO, the JV is a further step in expanding our presence in growing markets," he added.

UNI

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