This collaboration was assisted by UK Trade & Investment (UKTI), which worked with Scorpion Automotive UK for three years, including advising on strategy for market entry into India. However, both the companies have not revealed any financial details about the the partnership.
The collaboration also provides the exclusive rights to Varroc Engineering to manufacture the licensed security products for global markets. Varroc and Scorpion Automotive will introduce the products like alarms, immobilisers, heated grips, throttle locks, smart chargers and vehicle tracking devices specially designed for two-wheelers.
These products are applicable to all two wheeler segments, both the companies are eying a strong market share in the auto sector by signing up with major players like Hero, Yamaha, Kawasaki, Harley Davidson & Bajaj Auto.
Ravi Damodaran, president, technology & strategy, Varroc Group said, “We have strong relationship with OEMs in India and this partnership will help us enhance our already diverse product portfolio for them. The need for security systems has not been appropriately addressed in this market for a long time; and Varroc together with Scorpion Automotive intends to address this gap with these products, which will further strengthen our market share.”
According to Damodaran, the operations under this agreement will come under Varroc’s electrical division and the products will be made at the company’s Chakan plant. The products will be built in India for local as well as export markets. These products will hit the markets by FY2016-17. Varroc is planning to introduce security based products for two wheelers for the first time in India.
“This partnership will create a complete different auto component category especially for two wheelers. Technology combined with Varroc’s manufacturing capabilities will ensure that these products can be sold anywhere in the world. I believe that if you can survive here (Indian markets), you can survive anywhere," said Mark Downing, managing director, Scorpion Automotive.