Hino Motors Ltd. has agreed to develop an advanced lower-emission diesel engine with an Indian company while utilizing the partner's parts procurement capability.

Hino, a Toyota Motor Corp. subsidiary that produces trucks, buses and other commercial vehicles, will provide Ashok Leyland Ltd. with engine technology meeting the Euro VI emission standard for heavy-duty vehicles to develop a diesel engine compliant with India's Bharat Stage VI, equivalent to the European standard, the two firms said in a joint statement Monday.

The two partners have cooperated in engine production in India since 1986. Through the latest linkup, both companies expect to leverage each other's strengths in diesel engines to enhance competitiveness.

Hino President Yoshio Shimo said the partnership "takes advantage of the strengths that the two companies have cultivated," adding that Hino will enhance its global competitiveness through the alliance in parts procurement.

Vinod K. Dasari, Ashok's chief executive officer, said the move "would be mutually beneficial and enable both of us to produce globally competitive products."

India has mandated the BS-VI mass emission standard throughout the country with effect from April 2020 to bring down exhaust emissions.

The government has decided to introduce BS-VI-grade auto fuel in Delhi and adjoining areas with effect starting next April, ahead of the initial schedule of April 2020 for engines, due to serious air pollution in the region.

Automakers in India are working on developing BS-VI-compliant engines to meet the deadline.

Oil-refining companies are making huge investments in fuel-upgrading projects to produce compliant fuel.