A unit of Italian truck manufacturer Iveco has entered into a deal to purchase a minority stake in India’s Blue Energy Commercial Vehicles that recently started building LNG-powered trucks.
According to a statement by Iveco on Wednesday, the closing of the stake purchase by FPT Industrial, the global powertrain brand of Iveco, remains subject to conditions precedent.
Iveco did not reveal further details regarding the deal.
Earlier this year, FPT Industrial signed a deal with Blue Energy Motors to supply engines for LNG-powered trucks.
The two firms recently unveiled the first LNG truck powered by FPT’s 6.7-liter engine.
“The investment further demonstrates the full support of FPT Industrial to the growth of Blue Energy Motors in its ambitious plan to play a key role in India’s decarbonization transition,” Iveco said in the statement.
Although currently focused on natural gas fuel applications, the collaboration also foresees the possibility of future technology deployments in the area of electrification, it said.