Chennai based Lucas-TVS, regarded as a market leader here for automotive, commercial vehicle and two wheeler starter motors, alternators and small electric motors, has entered into a business co-operation agreements with Indiana-based Remy International, the worldwide maker, remanufacturer and distributor of light duty starters and alternators and Delco Remy brand heavy duty systems.
The agreements include cross-technology licences, product sales, engineering support and supplier sourcing support.
Lucas-TVS is part of the US$6bn TVS Group. It has turnover of US$400m and is the largest Indian supplier of automotive electrical products, designing and manufacturing over 9m starters, alternators and small motors a year for major global and domestic automakers operating in India. The seven Lucas-TVS factories in India also export to North America and Europe.
The new agreements will allow Remy to license products from Lucas-TVS for Remy to manufacture and sell world-wide. Lucas-TVS in turn will license Remy products to make and sell in India. In addition, both parties may buy and resell each other’s products.
Lucas-TVS will be able to access Remy products and global customer relationships to sell to more foreign auto customers investing in India while Remy will use Lucas-TVS products and engineering capabilities to add new products of its own.
The companies also will work to support each other’s product sourcing efforts to optimise supplier relationships globally and reduce costs.
Remy International CEO John Weber said: “This agreement with Lucas-TVS allows Remy to participate in the fast growing Indian automotive market. It creates an opportunity for Remy to work with Lucas-TVS to develop new products and allows both companies to extend their traditional markets.”
Remy was recognised recently by the United States Department of Energy for its leadership role in hybrid technologies and awarded a US$60m grant under the government’s Electric Drive Vehicle Battery and Component Manufacturing Initiative.