Tata Motors, Voith may enter JV to manufacture diesel engines

Germany-based company, Voith, which manufactures paper machines, hydropower equipment and diesel locomotives, may enter a joint venture with the Tata Group to make diesel engines for its locomotives. The German manufacturer is looking for a second source of diesel engines for its locomotives, which currently come from a company in Turkey. It is considering Tata Motors because the Indian company already has experience in manufacturing diesel engines for its commercial vehicles. Talks between the two companies also include a proposition to jointly manufacture hydrodynamic retarders, which are used to slow down high-speed vehicles. A Voith official said that its new retarders would cost 35 per cent less that their usual price, to meet the low-cost target set by the Tata Group for the development of the Nano’s equipment. Tata Motors currently has a JV with US-based Cummins Engine Company to make diesel engines at Jamshedpur.