India and Germany on Saturday agreed to join hands in meeting the auto-energy challenge through cooperation in the development of alternative fuel strategies.
"Indo-German bilateral trade has been growing and the two countries have already been working together in three other areas and now we are adding a fourth joint working group in the auto sector, which will look into future alternative fuel strategies," Union Heavy Industries Minister Sontosh Mohan Dev said while inaugurating a symposium.
A Memorandum of Understanding between India's automobile industry group Society of Indian Automobile Manufacturers (SIAM) and its German counterpart Verband der Automobileindustrie (VDA) was signed on Saturday.
As per the MoU, SIAM and VDA would cooperate in the areas of diesel engine, alternative drives and fuels and for working towards fuel efficient engines.
Stressing on the need for the two countries to cooperate in the development of alternative fuel technologies, Germany's Parliamentary Secretary, Federal Ministry of Transport, Ulrich Kasparick said cooperation should start right from research and development at the university level.
"If the automobile sectors of both the countries are able to take a leading position in the global stage on the biofuel and alternative fuel technologies, it would be good for both the economies," Kasparick added.
SIAM and VDA will assist each other in the development of fuel efficient innovative drive systems, including clean diesel technology under the MoU.