Fiem Industries Ltd., a renowned automotive components manufacturer and OEM supplier to many Indian and international vehicle manufacturers, has taken another step by signing a joint venture agreement with Aisan Industry Co. Ltd., Japan, and Toyota Tsusho Corporation for manufacture of fuel pump modules and IC connectors for two-wheelers and three-wheelers for the Indian market.
The agreement signing ceremony took place at Fiem’s office in New Delhi. The factory of the joint venture is being set up in the Tupukara / Salarpur Industrial Area, Rajasthan. The earth-breaking ceremony of the new factory was held at this site in April last, and now construction work is in full swing. The initial investment is Rs. 1 billion in the form of share capital by the JV partners. Production will commence from April 2019.
Aisan Group, established in 1938, is a global player in products like electronic fuel injection products, emission control system products, engine cooling system products, intake and exhaust system products, engine valves and LPG & CNG system products, etc. It has also its global presence through its subsidiaries and affiliates, and its major customers are Toyota, Hyundai, Renault, Nissan, Yamaha, Suzuki, etc.
India is now the world’s biggest two-wheeler market. The fuel injection system will become mandatory for two-wheelers and three-wheelers with effect from April 2020 under the Bharat Stage VI (BS-VI) norms. This is an advanced emission control system project which will have a huge market in India under the BS-VI norms and will replace carburettor.
Fiem has also signed a technical assistance agreement with Toyodenso Co. Ltd. of Japan for manufacture of bank angle sensors in India, critical safety products that help the driver in minimizing the accident impact. Production is expected to commence from April 2019.