Commercial Vehicle Group, which produces a variety of components for heavy duty truck makers worldwide, has entered into a joint venture with Hema Engineering Industries Limited to produce seats and seating components for commercial vehicles in India.
CVG said it will hold a 90% ownership in the joint venture, with Hema holding the other 10%, while leasing a production plant in the Delhi NCR (Gurgaon) region of India, where Hema maintains its existing manufacturing facilities.
Hema will also initially supply components to the joint venture, which CVG expects will begin operation in early to mid 2012.
“Similar to our approach in China, we will transfer existing product to India and work to grow our seating business over the next several years,” said W. Gordon Boyd, president of CVG’s seating operations.
“In addition to the transfer of existing product, we will also be producing seats for the domestic India truck market,” he added. “We expect to grow the domestic India market much like we did in China and are currently targeting $20 million to $25 million of new domestic India seating business over the next several years beyond our initial startup period of 2012.”