Ashok Leyland and Siemens VDO have entered into a joint venture to design, develop and adapt infotronics products and services for the transportation sector. For all practical purposes, this will be a design, developing and marketing entity where manufacturing will be partially outsourced.

The joint venture will be up and running in early 2008 and will develop electronic components and software such as instrument cluster applications, cockpit electronics and various control units for commercial vehicles and cars. While it is expected to meet the needs of Ashok Leyland, it will look at business options with other vehicle makers both here and abroad. Once the partners decide on a dedicated facility, a plant will be set up in Chennai, said managing director of Ashok Leyland, R Seshasayee. The new company will clock more than 100 million euros in 5-6 years, he added.

Leyland and Siemens VDO have been working together as consortium members in the Chennai Metropolitan Bus Terminus project to provide state-of-the-art telematics solutions for the Tamil Nadu State Transport Undertaking. This project is expected to be launched later this year on a pilot basis at the Koyembedu Bus Terminus and the technology product and services developed have the potential to become the standard platform for all state transport undertakings in India, Seshasayee said.

The joint venture will accelerate the development of next generation telematics solutions. “Our customer insight, engineering capabilities and competitiveness along with the technology strengths of Siemens VDO will fuel the growth of this JV in what is an emerging big opportunity in the transportation sector,” he said. “We are happy that we have a strong partner in Leyland. It is our aim to focus development activities on the market. The joint venture is a further step in expanding our presence in growing markets,” said CEO, global commercial vehicles business, Siemens VDO, Christoph M Eisenhardt.