The new engines to be developed will be meeting the BS-VI emission norms and will be run on diesel and alternative fuels in the clean energy space, the company said today.
Greaves Cotton's engines is the market leader with close to 78 per cent market share in the diesel-driven 3- wheeler market and has recently crossed the 5-million engines powering various cargo and passenger vehicles in a three-wheeler and micro four-wheeler space.
Piaggio India started its association with Greaves Cotton in 1998-99 and has since then sold over 5 million engines to Italian major, which is also into four-wheelers with its micro-trucks in the under- 1,000 kg load capacity.
Greaves has automotive engines plants in Aurangabad and Ranipet near Chennai while its R&D centers are in Aurangabad and Pune.
It can be noted that the three-wheeler segment has been down until the third quarter of this financial year. Greaves offers single cylinder diesel and CNG engines to the three-wheeler space.
Speaking on the tie-up, Nagesh Basavanhalli, managing director and chief executive of Greaves Cotton said his company is investing in new technologies and building capabilities to meet the demand for fuel-agnostic, future-ready solutions serving the last mile transportation market.
"Our new solutions will cover a range of fuels from diesel, petrol, CNG to electric which will continue to leverage our strengths," he said.
The company had recently tied up with the California- based Pinnacle Technology to offer opposed-piston CNG engines which have since shown impressive results. With these BS-VI engines, the company hopes to revolutionise the autorickshaw market by reducing substantial fuel cost and total cost of ownership.
The Rs 18 billion Greaves has sold over 3 lakh engines in financial year 2017 before successfully transiting to BS-IV compliant engines from April 2017.
Greaves is a leading engineering company with core competencies in diesel/petrol engines, farm-focused generator sets and light construction equipments.