Hino and Ashok Leyland have had a co-operative agreement for engine production in India since 1986.
Both the companies will leverage each other strengths in diesel engines to enhance their competitiveness.
Ashok Leyland will jointly develop engines for BS-VI compliance in India through the engine technology of Hino Motors. The deal would push the purchase of Hino's engine parts in India.
Vinod K Dasari, managing director, Ashok Leyland, said that the co-operation between the two companies would be mutually beneficial and would enable both to produce globally competitive products.
Yoshio Shimo, president and chief executive officer, Hino Motors said, "We believe this co-operation with Ashok Leyland takes advantage of the strengths that the two companies have cultivated. Hino will enhance its global competitiveness by utilising Ashok Leyland's part procurement capabilities in India."
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