Lumax Auto, Spain’s FAE forms JV to tap 10 pc Indian market shares

New Delhi, Aug 24: Eyeing to tap 10 per cent of Indian market share, domestic auto parts maker Lumax Auto Technologies today announced its joint venture (JV) with Spain-based Francisco Albero SAU, (FAE) to manufacture and supply oxygen sensors to the Indian automotive industry. Commenting on the joint venture, Deepak Jain, Promoter Director, Lumax Auto Technologies said, "Owning to the Bharat stage VI emission regulations which will come into force by 2020 and become mandatory, there will be a significant potential for oxygen sensors.FAE has more than 60 years of experience and has a team of R&D experts working dedicatedly on developing the technology for O2 sensors for over a decade and we have found mutual growth opportunities." Under the joint venture, the Lumax Auto will own 51 per cent while FAE will own 40 per cent of the joint venture company. This joint venture will garner 10 per cent of market share by 2020. Currently, the market shares stood at 150 million euros. The joint venture has been named as "Lumax FAE Technologies Pvt Ltd. The JV will invest Rs 14-crore as the initial investment for an installed capacity of two million oxygen sensors and the production is expected to start from early 2019. Francisco Marro, Chairman, FAE, Spain said, “I am truly pleased to announce the creation of this Joint venture, which will enable us to reach a wider market and cater to the demand of one of the fastest growing automotive markets. The demand for the 2wheelers in India by 2020 is estimated to be 20 million units, we are gearing up for this future demand." “The company will deliver environment-friendly solution meeting the upcoming emission regulation norms and address the menace of Pollution, which is a concern in India,” said Anmol Jain, Managing Director, Lumxa Auto Technologies at the JV announcement. UNI