The wholly-owned subsidiary of Elgi Equipments, ATS Elgi, on Thursday announced its manufacturing agreement with VTEQ, a global leader in vehicle testing equipment based out of Spain.
Under this partnership, the garage equipment manufacturer aims to set up a 7,500 square feet manufacturing facility for vehicle testing equipment which were otherwise imported for the Indian market.
Praveen Tiwari, Managing Director, ATS Elgi, said, 'We have been maintaining VTEQ vehicle testing equipment in India for Government-run testing centers for over five years as a natural extension of our association with them.”
Dr Jairam Varadaraj, Managing Director, Elgi Equipments, noted that India was the fifth-largest car market in 2020, and the country's automotive sector, including components, is expected to be worth INR 16.1-18.1 trillion by 2026.
“We’re also witnessing the Indian Government introducing key initiatives - the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME), the National Automotive Testing and R&D Infrastructure Project (NATRIP), and the Bharat Stage-6 standards to promote the country's automobile production and testing,” he said.
Over the next five years, the company expects over 200 testing centres will be set up in the country, Varadaraj added.