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Sumitomo teams with Mahindra to help Japan's carmakers go digital

New joint venture to boost Indian tech unit's presence in the country

A Mahindra Funster electric concept SUV is unveiled at the India Auto Expo 2020 in Greater Noida, India, in February 2020.   © Reuters

TOKYO -- Japanese trading house Sumitomo Corp. and India's Tech Mahindra have launched a joint venture to offer information-technology-based design and development services to Japan's automakers and auto parts producers as the industry undergoes digital transformation.

SCTM Engineering, the 50-50 venture in Tokyo, will draw on Tech Mahindra's track record of automotive engineering working chiefly with American and European customers and its strengths in autonomous driving and information security.

Tech Mahindra, a member of multinational conglomerate Mahindra Group, seeks to establish a stronger foothold in Japan's IT sector through the partnership with Sumitomo, the anchor of one of Japan's most dominant corporate groups.

Sumitomo made a foray into the burgeoning market last August with formation of support provider SC Automotive Engineering. The Japanese group looks to tap its broad network in the auto industry to provide cutting-edge technology consulting services besides the IT-based work through the new joint venture with Tech Mahindra.

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