A 3-stroke engine maker has said it is exploring a joint venture with a US engine maker for its next-generation engine, in a bid to boost its production capacity.
The engine maker, which is owned by Indian-American industrialist Manoj Bajaj, is seeking an investment of $100m from a US firm, with the company expected to begin production next year.
It said it will manufacture its engine for the US market from its plant in Fremont, California, and the joint venture will help it expand production capacity in the area, which could boost sales in the United States.
“The new product is intended to serve the increasing need for more efficient and affordable engines, while creating more jobs and providing an attractive business environment for our manufacturing partner,” the company said in a statement.
The US company said it was looking to build a joint factory that will produce its next generation engine at its Fremont facility.
The company said the joint plant will create 5,000 jobs and add $300m to its payroll.
In India, the company’s engine is a significant supplier to both the US and India.
It has been supplying engines for cars such as the Mazda6, Ford Focus, Jaguar XF and Toyota Corolla, among others.
It is also the engine of choice for the Nissan Leaf, which has a range of over 1,500 kilometres.