Auto parts maker Pricol Ltd has entered into a joint venture agreement with Zorg Industries (Hong Kong) Ltd for manufacture, supply and sale of parking assistance systems for India.
Pricol will have a 60 per cent stake and Zorg 40 per cent.
Zorg Industries, a global leader in advanced driver assistance systems, will provide the technical expertise in sensing, vision technology and manufacturing process. Pricol will provide the infrastructure for making the systems as well as the support for sales and distribution across OE and after-market segments.
The JV plans ₹6.5 crore investment for an initial production capacity of one million units.
“With this long-term partnership, we believe both the companies will be able to participate in the growth of the Indian automotive market and ride the wave of safety regulation norms made mandatory by our government,” said Vikram Mohan, Managing Director, Pricol Ltd.
As per the proposed norms, reverse parking sensors will become a mandatory feature for all passenger cars manufactured after July 2019 and the JV will help Pricol to be market-ready to tap this opportunity.