Engine and fuel systems supplier, Orbital has signed a cooperation agreement with Indian-based UCAL Fuel Systems to develop a joint venture in Chennai, India.
The joint venture will focus on providing vehicle, engine and component testing and certification as well as engineering consulting.
The business will also target the design, development and manufacturing of engine management systems (EMS) and fuel systems for the local Indian market.
Orbital are looking to target the growing natural gas market in India through gasoline and gaseous engine management systems which will be developed from current designs used by the company in Australia.
The company is aiming to break into the Indian market of EMS with designs developed by the joint venture, utilising Orbital’s technological research and development in alternative fuels.
The number of alternative fuel powered vehicles in India has more than doubled since 2007.
The country is the second largest producer of petrol powered motorcycles in the world, with 15.3 million produced in 2012.
Orbital will also aim to reduce production and manufacturing costs through the Indian joint venture, which the company hopes will begin exporting to international markets.
Chief executive officer of Orbital, Terry Stinson said the Indian joint venture provided the company with an opportunity to expand into a growth market while reducing costs.
“A joint venture in India with an esteemed partner like UCAL provides an opportunity to expand our markets and grow Orbital’s top line.
“The target is to use this new base in India as the vehicle to reduce the overall costs of our products and services.”
“Building on success with new product offerings in India, the joint venture will be able to also take these new products to international markets,” he said.
