Škoda Group has signed a Memorandum of Understanding (MoU) with TATA AutoComp Systems of India to provide products and services to automotive original equipment manufacturers and suppliers in the country.

This MoU will strengthen Škoda Group’s position in foreign markets and expand its presence outside Europe, which is part of its business strategy. The agreement sets the framework for a strategic joint venture aimed at producing components for India’s growing railway and public transport market, especially as India’s vast and rising market presents huge opportunities for growth and expansion.

The agreement is the first step towards a comprehensive feasibility study that will outline the scope of investment, expected scale of business, and other key considerations.

By combining Škoda Group and Tata’s expertise and knowledge, the joint venture is designed to create a strong foundation for long-term success with Indian railways.

The development and production of electrical equipment and components is one of the strong foundations of Škoda Group. In addition to supplying its own products, Škoda aims to significantly increase the volume of orders from external customers in the rail and urban transport sectors.

Škoda Group designs and manufactures the components to meet key requirements such as high reliability, safety, efficiency, low energy consumption, robustness, low lifecycle costs and maximum environmental friendliness. By joining forces with a respected Indian partner,

Škoda Group aims to build a strong position in the Indian railway market that will encourage economic growth, create jobs, and enable advancements in technology.

Petr Novotný, President Components & Bus Mobility at Škoda Grou, said: “The integration of local skills, knowledge, and resources with our proven products and know-how will contribute to the realization of a mutually beneficial and sustainable partnership.

“Our collaboration with TATA AutoComp Systems represents an exciting opportunity to enter the Indian railway and bus public mobility market.

“India’s great potential, coupled with the skilled workforce and market demand, aligns perfectly with our group’s growth strategy. Together, we will explore new opportunity and create innovative solutions to meet the developing needs of the Indian railway industry.

“In line with this, we particularly have on top of our mind the Make in India initiative, under which we will work together to support the growth of the industry in response to dynamic market demands.”

Arvind Goel, Chairman at Tata AutoComp, said “Tata AutoComp has always been a pioneer in introducing cutting-edge technology to its customers. This association with Škoda Group will further strengthen our presence by bringing the latest electrical equipment and components for Indian Railway & Metro & Bus market.

“We take pride in our partnership with Škoda Group, a company steadfastly dedicated to serving global markets with its diverse range of Railway Components.”