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By Our Special Correspondent
Under an agreement, penned here today, Hino Motors will transfer to the Hinduja outfit, on an exclusive basis, technology for the manufacture of the high horse power (260hp), eight-litre Euro II and Euro III-compliant J series engines. Hino has also agreed to provide know-how for high-power CNG engines as well. The technical agreement will involve undisclosed royalty and know-how payment to the Japanese company. This is the second technical collaboration between Ashok Leyland and Hino Motors. The first agreement, it may be recalled, was penned in mid-1980s and covered technology transfer of four- and six- cylinder diesel engines, which have been developed to Euro II compliant levels by Ashok Leyland. The second technical agreement with the Japanese company comes at a time when ALL has chosen to phase out the Iveco engines and positioned Hino as the primary engine platform for the medium duty range of vehicles. The technical collaboration for J series engine, it is stated, will facilitate Ashok Leyland traverse to high-end heavy-duty vehicle segment. Addressing a press conference here today, R. Seshasayee, Managing Director of Ashok Leyland, described the second technical collaboration with Hino Motors an "important milestone in the annals of his company". Viewed as a proactive move, the tie-up for J series engines is expected to prepare Ashok Leyland in advance to the evolving Indian transport industry, which is moving towards higher power and higher capacity vehicles what with the road infrastructure undergoing a major metamorphosis. Mr. Seshasayee, however, indicated that the J series engines would be made in one of the production facilities in Tamil Nadu. He said that Ashok Leyland would go in for a phased manufacturing programme for J series engines. Initially, the indigenous content could be 3-40 per cent. This would move up to 90 per cent over five to six years, he indicated. He expected the piloted production of vehicles fitted with J series engines within the current financial year itself. The J series engine-fitted vehicles should hit the market by the second quarter of next year, he added. The J series engines would be offered initially in articulated tractors, buses and tippers, he said. Hino Motors is exploring the possibility of procuring parts from Indian companies. Indicating this Takeshi Lida, Managing Director of the company, said Hino Motors would soon start a study on the viability of procuring parts made by Indian suppliers. Asserting that Hino would buy from anywhere the best quality and competitively priced products, Mr. Lida said the Japanese company was "aware of the high level of Indian industrial talent". He hinted that if the proposed study was favourable, Indian suppliers could be `sourcing points' for not only Hino Motors but also for its subsidiaries and affiliates overseas. Mr. Lida was here to sign a technology transfer pact with Ashok Leyland for J series engines. Sources indicated that Hino Motors had, in fact, sounded out Leyland on the possibility of supplying components for H series engines.
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