Ashok Leyland & Siemens VDO in Infotronics JV

Ashok Leyland Ltd has announced that the Company and automotive supplier Siemens VDO Automotive AG, Germany, have signed an agreement for a joint venture to design, develop and adapt infotronics products and services for the transportation sector. The agreement was signed on July 16, 2007 in Chennai, India, by Mr. R Seshasayee, Managing Director of the Company and Mr. Christoph Maximilian Eisenhardt, CEO, Global Commercial Vehicles Business, Siemens VDO, Germany. The equity of the JV Company will be held at a ratio of 50:50 between the Company Siemens VDO. The Joint Venture is subject to certain corporate and statutory approvals from both sides.

This joint venture recognise the increasing content of IT, electronics and communications in vehicles the world over - a trend being witnessed in the India passenger car segment also. Infotronics content is expected to grow significantly in the Indian Commercial Vehicle segment also, following fuel introduction of BSIII compliant vehicles with electronically controlled fuel injection. The join venture 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 Joint Venture Company is expected to cater to the requirements of the Company vehicles, it will actively pursue opportunities with other vehicle manufacturer in India and abroad.

Both, the Company and Siemens VDO have been working together as consortium members in the Chennai Metropohtan Bus Terminus project to provide state-of-the-art Telematics solutions for the Tamil Nadu State Transport Undertaking. This project is expected to be launched later this year on a pilot baths at the Koyembedu Bus Terminus and the technology product and developed have the potential to become the standard platform for all State Transport Undertakings in the country. This Joint Venture Company will accelerate the development of next generation Telematics solutions for introduction into the market.

"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 in what is undeniably the emerging big opportunity in the Transportation sector."

The automotive industry in the second hemisphere countries has been registering double digit growth. Alongside, regulations for vehicle and traffic safety and for the reduction of emissions are being tightened. Innovative electronics aligned to the special requirements of these emerging markets contribute toward making passenger cars and commercial vehicles more economical, safer and cleaner.

Source : Equity Bulls

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