Automotive components maker Amtek Auto has formed a joint venture with South Korean automaker Autech Corporation to manufacture vehicles for defence, paramedical, fire fighting and waste management sectors to capitalise on the booming demand for specialized vehicles.

The Delhi based company will set up an assembly facility at Daruhera in Haryana with an initial capacity of 10,000 units per year.

Mr Arvind Dham chairman of Amtek Auto said that "We are anticipating a huge market potential as the fast-track Indian economy is bound to create demand for these vehicles. We are yet to finalize the modalities of our agreement and finalize investment plans, but have inked a technical alliance with the Autech Corporation.”

The alliance will start manufacturing operations to assemble vehicles later this year. While Autech Corporation, which mainly makes ambulances, medical examination vans and welfare cars, will supply critical parts from its South Korean plant, Amtek Auto will develop the components. Amtek operates 43 manufacturing facilities in India and abroad. The project is expected to start with the medical vehicle segment and will have high localization. Mr Dham added that "We are aiming at 70% local content from day one to keep the prices effective for the local market.”

Amtek, one of the largest supplier of automotive components to auto companies such as TATA Motors, Maruti Suzuki, Hyundai, is the first automotive component maker to foray into vehicle manufacturing.

(Sourced from ET)