Auto components maker Pricol today said it has signed an agreement with China-based Wenzhou Huirun Electrical Machinery for technical collaboration, supply and production of fuel pumps and its modules in India.
The tie-up is part of Pricol's plans to further strengthen its automotive pump portfolio in India and will now become a supplier of fuel pump module required for electronic fuel injection system, Pricol said in a statement.
The company has lined up an investment of Rs 20 crore over the next three years and is looking to garner over 30 per cent market share in the two-wheeler segment in India.
"Our priorities will be to strengthen our product portfolio, technologies and production capabilities to meet the BS VI norms by 2020," Pricol Managing Director Vikram Mohan said.
Under the agreement, Wenzhou Huirun will support Pricol with product and process technologies for new businesses in segments like two, three and four-wheeler alongwith commercial and off-road vehicle.
With the implementation of BS VI norms by 2020, the entire two-wheeler industry will migrate to the electronic fuel injection system and the fuel pump module will be the key product in its functioning, the company said.
The company plans to manufacture three to six million fuel pump modules post the implementation of BS VI norms.
"With Pricol's substantial leadership in production of auto components and solutions, we aim to further strengthen their position and value through significant business growth in India," Wenzhou Huirun Electrical Machinery Director Huang Guoyao said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)