Italian carmaker Fiat SpA's components unit Magneti Marelli has signed a joint venture agreement with India's Sumi Motherson Group to produce automotive components for lighting and engine control systems.
The industrial facilities will be located near New Delhi and Pune, in the western state of Maharashtra, and will concentrate on the assembly of intake manifolds for engines, rear and headlamps for automobiles, Fiat said.
The Indian car market is expected to have a compound annual growth rate of 12.4% until 2017, with production increasing from 1.9 million vehicles in 2007 to 4.4 million in 2012 and 6.2 million in 2017.
According to the Chief Executive Officer (CEO) of Magneti Marelli, Eugenio Razelli, the joint venture is the company's second strategic contract signed in India in the last months.
It is part of its plans for direct presence on emerging markets such as the Indian one.
