New Delhi: Auto components maker TATA AutoComp and Skoda Group on Wednesday announced the formation of a joint venture to manufacture railway propulsion systems and components in India envisaging ‘multi-million euro investment’ in the country.

This partnership is aimed at supporting the growing Indian railway and mobility markets, TATA AutoComp said in a statement.

Skoda Group is a leading European manufacturer of components and vehicles for public transport. On the other hand TATA AutoComp has a significant market position in providing systems and components for electric vehicles.

“This partnership will diversify TATA AutoComp’s portfolio and strengthen its capability in railway and metro segment,” the company said.

TATA AutoComp further said “it aims to bring sustainable innovations in mobility solutions at an affordable cost, specifically catering to rolling stock in India.”

The new company, jointly owned by the two partners, will focus on manufacturing converters, drives and auxiliary converters for medium high-speed and regional trains, metros and light rail vehicles, the statement said.

“Manufacturing operations will be based in India. The joint venture involves a multi-million-euro investment and is expected to bring economic and technological benefits to the region,” it added. Tata AutoComp Vice-Chairman Arvind Goel said: “Our collaboration with Skoda Group is set to enhance our footprint in the Indian Railway and Metro sector by enabling the introduction of state-of-the-art electrical propulsion systems and components.”