India and Germany Wednesday extended their joint working group (JWG) on automobile sector by another two years for greater cooperation in research and development (R&D).
"JWG is focusing on greater exchange of information and cooperation in the fields of R&D, sustainable alternative fuels and efficient engine technologies," the heavy industries ministry said in a statement.
The Indo-German JWG was constituted in 2009 and has so far held six meetings.
"It (JWG) also aims to initiate steps for quality improvement and facilitate institutional cooperation for the development of auto industries in both the countries," said the statement.
According to the ministry, India provides great opportunity for German manufacturers in the long haul, as car sales in the country are expected to rise from three million to nine million by 2020.
By 2020, it is expected that two-wheeler sale in India will cross over 30 million from the current 14 million, while commercial vehicles sales will increase from 0.7 million to 1.6 million.