Enters into an exclusive agreement with Wenzhou Huirun Electrical Machinery Co., Ltd and eyes more than 30% market share in 2-wheeler segment in India
Coimbatore (India), October 04, 2017: Pricol Limited (BSE: 540293 / NSE: PRICOLLTD), a leading manufacturer of automotive components and solutions provider for the global automotive market, today announced an exclusive agreement with Wenzhou Huirun Electrical Machinery Co., Ltd for technical collaboration and, supply and production of Fuel Pump and Fuel Pump Modules in India. Through this strategic agreement, Pricol intends to further strengthen its automotive pump portfolio in India and will now become a comprehensive supplier of Fuel Pump Module required for Electronic Fuel Injection Systems. Wenzhou Huirun will support Pricol Limited with product & process technologies for new business opportunities arising in all segments like 2 wheeler, 3 Wheeler, 4 Wheeler, Commercial vehicle and Off-road vehicle (both Petrol & Diesel systems).
With an initial investment of INR 200 Million over the next 3 years, Pricol Limited eyes a market share of more than 30% in the 2 wheeler segment in India. With already confirmed order for this product with a leading 2 wheeler OEM in India, Pricol Limited plans to manufacture 3 Million to 6 Million Fuel Pump Modules post the implementation of BS VI. After the implementation of BS VI norms in India by 2020, the entire two wheeler industry will migrate to the Electronic Fuel Injection System and the fuel pump module will be the key product in its functioning. The Fuel Pump Module controlled by Engine control unit (ECU) will inject metered amount of Air & Fuel mixture into the engine for effective combustion.
Speaking on the occasion, Mr. Vikram Mohan, Managing Director, Pricol Limited said, “FY-17 is going to be the most definitive year with our various strategic partnerships. Our priorities will be to strengthen our product portfolio, technology and production capabilities to meet the BS-VI norms by 2020. India has overtaken China to emerge as the world’s biggest market for two-wheelers. With Wenzhou Huirun’spartnership, we are targeting over 30% market share in this product segment in the two-wheeler market in India which is on a course to touch the 20 million mark by 2020. With Pricol Limited already being the Leader in the manufacture of Fuel Level Sensor for the 2 wheeler market in India, this partnership perfectly suits our product portfolio and capabilities.”
Signing the partnership agreement, Mr. Huang Guoyao, Director of Wenzhou Huirun Electrical Machinery Co., Ltd said, “Until now, majority of motorcycles in India have employed conventional carburetor fuel system. Through our exclusive partnership with Pricol Limited, we are looking forward in supporting them with our electric fuel pump and fuel pump modules which works with the most promising technology that will enhance positively the fuel economy, engine performances and also assist in reducing exhaust emissions, as compared to the conventional carburetor fuel system. With Pricol’s substantial leadership in the production of auto components and solutions, we aim to further strengthen their position and value through significant business growth in India.”
About Pricol Limited:
Pricol Limited is a leading manufacturer of automotive components for the global automotive market, thrives on innovation, cutting edge technology and superior products across two, three and four wheelers, commercial vehicles, tractors and construction & industrial segments across the global market. With over 40 years of expertise in the automotive components business, the company’s performance is driven by over 30 patents, 11 manufacturing units and 5 International business offices across the globe including India, Indonesia, Brazil, USA, Germany, Singapore, Thailand, Mexico, Czech Republic and Japan. For further information on the organisation and its products, please visit http://www.pricol.com/
About Wenzhou Huirun Electrical Machinery Co., Ltd:
Wenzhou Huirun Electrical Machinery Co., Ltd (ACHR), founded in 1994, is a hi-tech enterprise with Independent intellectual property rights, professionally engaged in research, design, development and manufacturing of automobile electric fuel pumps and modules, and helped drafting the electric fuel pump standard in China. Over 90% of ACHR products are exported to customers all over the world, mainly in America and Europe. It actively boosts cooperation with the OE manufacturers and now has already cooperated with main auto manufacturing companies including SAIC, Dongfeng Nissan Zhengzhou, FAW and Nanjing Iveco on the R&D of automobile electric fuel pumps and module. ACHR is the leader in this product segment and experts in the 2 wheeler segment.