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Auto part investments to treble in 3 yrs
By siliconindia
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Thursday, 20 December 2007, 02:35 IST
Mumbai: Domestic auto component companies are investing $7.5 billion (
30000 crore) to cash in on the automobile boom, reported the Business standard. It also reported that at the end of the year 2010 the automobile capacity in the country would double from 2.2 million units per annum to 4.4 million.
"The industry will invest $7.5 billion (30000 crore) in the next two years. Last year, we did a business of $15.5 billion (Rs 62000 crore) and this year we will do a business of $17.75 billion (71000 crore)," said Sanjay Labroo, President, Automotive Component Manufacturers' Association (ACMA).
The leading auto component company Bosch has committed an investment of Rs 2,650 crore through four subsidiaries in India. The Fund will be used to set up manufacturing facilities for gasoline systems, electronic control units and ABS systems.
Sona Koyo, a Delhi based manufacturers of steering columns, axle assembly and propeller shaft, plans to invest $10 million (Rs 400 crore), including $5 million (Rs 200 crore) to be spent in 18 months. The company caters to Toyota, Nissan, Suzuki and Renault.
The company forged a joint venture earlier this year with Japan-based JTEKT a manufacturer of steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc for making electronic power steering systems at an investment of $37.5 million (Rs 150 crore). The facility is coming up in Haryana.
"We are in talks with international players. They are checking our facilities to evaluate the manufacturing and supply capacities," said Surinder Kapoor, Chairman, Sona Group.
"Tata AutoComp would like to build technology and business process capabilities to be a leading global supplier to the automotive industry. Domestic growth will largely come from increase in the domestic automobile market, as well as exports of components from India," said a company spokesperson.
SKF, a bearing manufacturer is targeting 20 percent growth to $750million (Rs 3,000 crore). Mahindra Systec, formerly Mahindra Systems and Automotive Technologies (MSAT), the auto component arm of the $4.5 billion Mahindra group, is targeting revenue of $1 billion.
30000 crore) to cash in on the automobile boom, reported the Business standard. It also reported that at the end of the year 2010 the automobile capacity in the country would double from 2.2 million units per annum to 4.4 million.
"The industry will invest $7.5 billion (30000 crore) in the next two years. Last year, we did a business of $15.5 billion (Rs 62000 crore) and this year we will do a business of $17.75 billion (71000 crore)," said Sanjay Labroo, President, Automotive Component Manufacturers' Association (ACMA).
The leading auto component company Bosch has committed an investment of Rs 2,650 crore through four subsidiaries in India. The Fund will be used to set up manufacturing facilities for gasoline systems, electronic control units and ABS systems.
Sona Koyo, a Delhi based manufacturers of steering columns, axle assembly and propeller shaft, plans to invest $10 million (Rs 400 crore), including $5 million (Rs 200 crore) to be spent in 18 months. The company caters to Toyota, Nissan, Suzuki and Renault.
The company forged a joint venture earlier this year with Japan-based JTEKT a manufacturer of steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc for making electronic power steering systems at an investment of $37.5 million (Rs 150 crore). The facility is coming up in Haryana.
"We are in talks with international players. They are checking our facilities to evaluate the manufacturing and supply capacities," said Surinder Kapoor, Chairman, Sona Group.
"Tata AutoComp would like to build technology and business process capabilities to be a leading global supplier to the automotive industry. Domestic growth will largely come from increase in the domestic automobile market, as well as exports of components from India," said a company spokesperson.
SKF, a bearing manufacturer is targeting 20 percent growth to $750million (Rs 3,000 crore). Mahindra Systec, formerly Mahindra Systems and Automotive Technologies (MSAT), the auto component arm of the $4.5 billion Mahindra group, is targeting revenue of $1 billion.