TATA Auto Comp Systems on Wednesday said it has signed an initial pact with Skoda Group for a strategic partnership to jointly produce components for the railways, metro and bus segments.
The company in a statement said it has significant play in providing systems and components for electric vehicles and the association with Skoda Group will further strengthen its presence by bringing the latest electrical equipment and components for the three segments.
Tata AutoComp is into manufacturing of multiple components, systems and aggregates for passenger and commercial vehicles, two and three-wheelers as well as for farm and off-road equipment, among others.
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It provides these products and services to domestic and global automotive OEMs as well as Tier 1 suppliers.
The agreement with Skoda Group sets the framework for a strategic joint venture aimed at producing components for the growing Indian railway and public mobility market, Tata AutoComp said in a statement.
"This association with Škoda Group will further strengthen our presence by bringing the latest electrical equipment and components for the Indian Railway, metro and bus market,” said Arvind Goel, Chairman, Tata AutoComp.
At the same time, the Skoda Group through its partnership with Tata AutoComp seeks to tap into India's potential to deliver shared benefits and accelerate business development, the company said, adding that that one of the goals of the Skoda Group's business strategy is to strengthening its position on foreign markets and expanding its presence outside Europe.
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"India's great potential, coupled with the skilled workforce and market demand, aligns perfectly with our group's growth strategy," said Petr Novotný, President of components and bus mobility at Skoda Group.
The two partners together will explore new opportunities and create innovative solutions to meet the developing needs of the Indian railway industry, he said.
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