Shares of ASK Automotive Limited surged 4.99% to ₹357.35, hitting the 5% upper circuit on March 4, 2025, following the announcement of a Technical Assistance and License Agreement with Kyushu Yanagawa Seiki Co., Ltd. (KYSK), Japan.
Strategic Agreement for Cast Wheel Production
ASK Automotive has signed a perpetual agreement with KYSK to manufacture high-pressure die-cast alloy wheels for two-wheelers, specifically for an identified Japanese customer. This collaboration is expected to enhance the company’s manufacturing capabilities and meet global quality standards in cast wheel production.
Key Details of the Agreement
- KYSK will provide technical expertise and know-how to ASK Automotive.
- The company will pay a one-time initial royalty and a running royalty to KYSK.
- Production will be focused on the Indian market to meet growing demand.
Market Impact and Growth Prospects
By leveraging KYSK’s advanced technology, ASK Automotive aims to:
- Enhance performance, durability, and safety of alloy wheels.
- Improve production efficiency and expand market reach.
- Strengthen its position as a leading automotive component manufacturer.
With this collaboration, ASK Automotive is poised to accelerate growth in the two-wheeler segment, further boosting its market standing.
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