In a bid to diversify its automotive footprint, Tata Group’s Automotive parts subsidiary, Tata AutoComp Systems Limited has entered into a 50:50 JV with SECO Seojin of South Korea to design, develop and manufacture clutch systems in India.
The product range will comprise of the Clutch Cover, Clutch Disc and Friction material required for Clutch Application.
The focus for the joint venture will be to enter into India commercial vehicle market as well as the agriculture Tractor industry, expand passenger vehicle business and establish independent aftermarket for the product.
SECO currently manufactures clutch systems for passenger vehicles in its plant in Chennai and supplies to Hyundai. This plant will become a part of the Joint Venture.
Arvind Goel – MD & CEO Tata AutoComp said: “The demand for clutch systems will continue over the coming years. Our endeavor is to enhance our offering to provide our customers with the latest technology. SECO is a leader in designing and manufacturing of Clutch systems. We believe that there is a large opportunity for high quality Clutch Systems in the Commercial Vehicle space as well as in the aftermarket. We are confident that this JV will help us enhance our product range and also widen our offering in the Aftermarket space.”
Kiwook Bae CEO of SECO Seojin Group said: “SECO is honoured to partner with Tata AutoComp and build a win-win business partnership. There is a great potential in the Indian market for Clutches and together we can build a great business in the Traditional OEM space and also in the Aftermarket.”
Tata AutoComp has own capabilities in Automotive Interior & Exterior Plastics, Composites, Sheet Metal Stampings as well as Engineering and Supply Chain, entry into clutches opens up new business opportunities for the company.
Tata AutoComp has 8 joint ventures in partnership with leading companies from the Global Auto Component Industry through which it manufactures and markets automotive componentsNSE 0.22 % and systems like engine cooling solutions, automotive batteries, rear view mirrors, command systems, HVAC, exhaust and emission control systems, seating systems, electronic solutions and Battery Packs for passenger and commercial vehicles as well as suspensions for heavy commercial vehicles. Tata AutoComp has 36 manufacturing facilities spread across India and 9 facilities spread across North America, Latin America, Europe and China.
SECO Seojin Automotive on its part is one of the leading manufacturers of Clutches for both, the commercial vehicles as well as passenger vehicles. SECO also expertise in manufacturing automatic transmission parts.
Source: Economic Times