Bosch (NSE:BOSCHLTD, BOM:500530) along with Wheels India (NSE:WHEELS, BOM:590073) and Brakes India agreed to form a joint venture company in India to develop and manufacture advanced air system solutions for commercial vehicles, according to company statements filed by Bosch and Wheels India.

Shares of Bosch fell over 5% in Thursday's trade, while Wheels India jumped over 6%.

Bosch and the TSF Group entities, comprising Wheels India and Brakes India, will hold a 50:50 ownership ratio in the joint venture. Operations are expected to begin by end of this year, subject to regulatory approvals, Bosch said in a filing on Thursday.

The new entity will focus on electronically controlled and software-driven air system technologies, including air compression, air processing, suspension systems, and air parking brakes for trucks and buses. The end products are intended to be sold in global markets, Wheels India said in a separate filing on Wednesday.

The partnership aims to combine Bosch's capabilities in electronics, sensing and control systems with TSF Group's mechanical design and manufacturing expertise, it added.

The boards of the Bosch Brakes India and Wheels India have already approved the transaction.