Italian truck manufacturer Iveco said its unit FPT Industrial has signed a deal with India’s Blue Energy Motors to supply engines for LNG-powered trucks.
Under the deal, the duo will introduce the first LNG trucks powered by FPT 6.7-liter engines on Indian roads by the end of 2022, according to a statement by Iveco.
Iveco said this agreement is the first step in a potential long-term partnership to leverage the specific characteristics of India’s commercial transport market, with about 3.5 million vehicles.
The engines will initially be manufactured in FPT Industrial’s Turin, Italy plant, which specializes in producing this type of medium-displacement engines.
Iveco did not provide any additional information regarding the deal.
Indian government previously revealed plans to build a nationwide network of about 1,000 LNG filling stations for trucks.
Companies working on LNG-powered vehicles and stations in India include Petronet LNG, GAIL, Shell, AG&P, and others.
On the other side, Iveco said in November last year it had a 55 percent market share in Europe for LNG trucks. In total, Iveco sold more than 45,000 natural gas vehicles in Europe.