Nothing now stands in the way of a rail-sector partnership between the Czech Škoda Group and India’s industrial giant Tata Group. The European Commission has approved the transaction, which was announced last summer.

The two groups will establish a joint venture named Target JV, formed by subsidiaries of both companies. On the Czech side, the partner is Rolling Stock Components, part of Škoda Transportation, while the Indian partner is TATA AutoComp Systems.

The European Commission concluded that the notified transaction does not raise competition concerns, given its limited impact on the European Economic Area.

The joint venture will focus on the production of traction converters and drive systems for medium-speed trains, regional trains, and metro vehicles. Supplies will be directed primarily to the Indian market. According to Škoda, the project represents an investment of several million euros, although the exact ownership structure of the joint venture has not been disclosed.

The development and manufacture of electrical equipment and components for rail vehicles is one of Škoda Group’s core business pillars. Through this partnership, these components will now also be produced in India.

TATA AutoComp Systems already operates ten joint ventures with automotive component manufacturers. Through these partnerships, it produces engine cooling systems, automotive batteries, battery packs for electric vehicles, battery cooling systems, electric motors, and chargers. The company operates a total of 68 manufacturing plants across India.

Although the joint venture is primarily focused on the Indian market, it represents another significant expansion of Indian capital into Czech industry. Last year, Tata Group acquired the largest bus manufacturing plant in the Czech Republic — Iveco in Vysoké Mýto. Until then, Iveco had been controlled by Italy’s Agnelli family through its investment company Exor.

Tata Group acquired the Iveco Group in a transaction valued at EUR 3.8 billion. The deal excluded the defence division Iveco Defence Vehicles and Astra, which will be taken over by the Italian state-controlled company Leonardo. Iveco’s facility in Vysoké Mýto remains the company’s largest bus manufacturing plant.

Source: https://zdopravy.cz
Author: CzechTrade Sydney