Valeo has announced a new joint venture to make automotive electrical components with Indian automotive systems maker NK Minda Group.
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The new company, called Valeo Minda Electrical Systems India, will be 66.7% owned by Valeo and 33.3% by Minda.
Located in Pune near Mumbai, the joint venture will develop, produce and sell Valeo Electrical Systems’ products, including alternators and starter motors for passenger cars.
The total market for these products in India is currently estimated to be around 1.5m units a year and is growing at an annual rate of around 9%.
The joint venture is eyeing EUR50m in sales by 2010.
Valeo earlier in 2007 announced a 50/50 joint venture with the same Indian group to develop, make and sell Valeo Security Systems’ products in Pune.
The group also operates two other joint ventures in Chennai making clutches and friction materials.
Valeo chairman and CEO Thierry Morin said: “This is the second joint venture we have created in India this year. Expanding our presence in India demonstrates our belief in the growth potential of this market and our willingness to support a fast-developing local automotive industry.”
Minda Group chairman Nirmal Minda said: “We believe that this is the start of a long relationship that will enable us to better serve our OEM customers.”
His group has a turnover of INR8.3bn (about EUR185m).
