(Yicai Global) June 20 -- Chinese auto components supplier Tieliu Clutch will set up a new joint venture in India as part of efforts to tap business opportunities in the country.

The company has linked up with Punjab-based auto parts importer United International Trade to offer clutch components, the Zhejiang-based firm said in a statement.

The deal will help the Chinese company to scale up its overseas auto parts sales network, diversify its product mix, and ramp up supplies and sales in Southeast Asia, leveraging the Indian partner's domestic sales channels and expertise.

Both parties will take equal stakes in the JV through investments of USD3 million each. If business operations go smoothly, it will build local production lines for assembling imported clutch parts for general and commercial vehicles, it added.

The joint venture will import necessary production line equipment with Tieliu's assistance, and some machines will be sourced locally. Tieliu will also provide patented production technologies on the condition that they are not transferred to third parties.

Editor: William Clegg