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Japanese Auto Parts Suppliers in India : New Plants Going Live Around 2010In response to expanding local production by Suzuki, Honda and Toyota,
as well as Nissan's entry to market

Aug. 5, 2008 No.698


  The Indian automobile market is rapidly expanding, while Suzuki, Honda and Toyota plan drastic expansion of production and Nissan is building its new plants in the country. The following shows the recent movements by Japanese auto parts suppliers over there (the record covers about one and half year from the beginning of 2007 to the middle of July in 2008).

  For the information, India had a production of 2.31 million vehicles in 2007. The record has increased by 2.5 times over the recent five years, while auto parts production in moneys has expanded by 3.3 times over the same period (according to the ACMA tally).

  The annual production capacity of three Japanese auto manufacturers is at the 800,000 scale so far. The capacity will expand to the 1.3 million scale in 2010. Nissan will start running the new plants in 2010 also. One plant is a 50-50 joint venture with Renault (an annual production capacity of 400,000 vehicles), and another plant will begin joint production of light commercial vehicles with Ashok Leyland (the annual production plan is 100,000 vehicles).

Auto parts production and import/export of auto parts and related products in India

(1,000 USD)
  2002 2003 2004 2005 2006 2007
Auto parts production value 5,430,000 6,730,000 5,700,000 12,000,000 15,000,000 18,000,000
Exports Auto parts 349,529 431,599 614,890 1,018,705 1,257,269 1,352,537
Gasoline engine 73 83 391 3,309 486 146
Diesel engine 458 1,750 2,694 5,367 13,999 28,807
Parts for gasoline engines 49,844 66,569 94,282 138,332 144,088 17,956
Parts for diesel engines 74,666 100,154 149,245 229,430 327,679 420,613
Wiring harnesses for
transport equipment
6,263 15,346 14,911 16,086 25,288 33,165
Total (six items)
Exports to Japan
480,833
11,351
615,501
15,320
876,413
17,351
1,411,229
25,994
1,768,809
27,688
1,853,224
32,345
Imports Auto parts 257,033 362,936 607,915 763,815 934,520 1,347,880
Gasoline engine 15,534 27,260 42,458 27,160 36,682 96,874
Diesel engine 41,299 41,020 67,882 119,608 205,765 301,171
Parts for gasoline engines 37,882 47,808 71,060 62,413 94,577 154,865
Parts for diesel engines 80,517 112,908 114,688 174,945 169,087 244,582
Wiring harnesses for
transport equipment
1,272 1,186 3,843 3,189 6,662 20,107
Total (six items)
Imports from Japan
433,537
63,895
593,118
87,322
907,846
180,211
1,151,130
179,422
1,447,293
151,723
2,165,479
264,381
Notes: 1. Auto parts production value is in accordance with ACMA (Automotive Component Manufacturers Association of India. The data is based on the fiscal year commencing from April in the reference year and ended in the next March. The data of 2007 is estimation.
2. Imports/exports of auto parts and related products are the data on a calendar year basis according to the World Trade Atlas. The auto parts include both complete and completed parts, and parts for two-wheelers etc. The data of engines and engine parts do not include those of two-wheelers and marine vessels. The HS codes for the included items are as follows; 8708 for auto parts, 840734 for gasoline engines of over 1,000 cc, 840820 for diesel engines, 840991 for parts for gasoline engines, 840999 for parts for diesel engines and 854430 for wiring harnesses for transportation equipment.

India's automotive production/domestic sales/vehicle export

(units)
  2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Production 927,027 1,264,600 1,563,579 1,700,383 2,064,850 2,307,307
Domestic sales 897,880 1,162,210 1,380,002 1,494,117 1,847,580 2,034,802
Unit export 84,260 146,723 196,342 216,172 248,244 277,417
Source: SIAM (Society of Indian Automobile Manufacturers)
Notes: 1. The figures are the total of passenger vehicles (passenger cars, utility vehicles and MPVs) and commercial vehicles (Light/Medium/Heavy Commercial Vehicles).
2. The period 2002-03 is from April 2002 to March 2003, and the period 2007-08 from April 2007 to March 2008.
3. As of the beginning of 2008, India has a total annual production capacity of 2.55 million vehicles (including three-wheelers) of the production bases of world's leading auto manufacturers there and five locally-capitalized major auto manufacturers. When the planned expansion of the annual production capacity announced by these companies is added, the production capacity will rise by nearly two times to five million-unit scale in the medium run.
4. Japanese auto manufacturers, namely Suzuki, Honda and Toyota, have total 800,000 scale of annual production capacity so far. These three manufacturers plan to drastically expand the capacity, while Nissan is building new plants.
5. For details of these auto manufacturers, see the MarkLines Report No. 661, the April 2008 issue "Automakers in India Racing to Build New Plants, Doubling the Country's Annual Production Capacity to Five Million http://www.marklines.com/en/report/rep661_200804."

Plans to build new plants by Japanese auto parts suppliers in reaction to expansion of production by Japanese auto manufacturers

  There is a number of plans to build new plants by Japanese auto parts suppliers in North India (near Delhi) where Suzuki and Honda have their plants, and South India (near Bangalore or Chennai) where Toyota has its plant and Nissan are building plants.

  For example, Imasen Electric is establishing a production base for seat parts, Kikuchi for auto body frame parts, Keihin for air conditioner units, JTECT for electric power steering wheels, Tokai Rika for switches etc., Nissin Kogyo for brake parts, Furukawa Electric for wire harnesses and Takata for safety system parts such as airbags and seatbelts (two bases in both North and South India).

  Tokai Rubber began production of automobile hoses in North India, while it plans to produce anti-vibration rubber in South India.

Establishment of Indian production bases by Japanese auto parts suppliers

(Movements for about last one and half year from 2007 to middle of July 2008
described in the Japanese phonetic order of Japanese auto parts suppliers)

Alfatech establishes a joint venture to design dies

  Alfatech established, in June 2007, Sun Alphatec India, a joint venture with Sun Vacuum. Sun Alphatec India designs dies for automotive parts. The venture company was capitalized at 16 million Yen, in which Alfatech takes a stake of 49% and Sun Vacuum 51%. Sun Alphatec India uses the three-dimensional CAD system for designing dies, based on the two-dimensional drawings provided by Sun Vacuum. The subsidiary of Alfatech manufactures the dies according to the design drawings in Shanghai, China.

Imasen Electric Industrial produces seat parts in Rajasthan from August 2009

  Imasen Electric Industrial established Imasen Manufacturing India Private Limited in Rajasthan in November 2007, which manufactures seat parts. Imasen Manufacturing India Private Limited was capitalized at 300 million Yen (it plans to add about 200 million Yen in 2008). The new company is wholly owned by Imasen Electric. The ground floor area is 40,000 square meters and the plant building area is 4,000 square meters. The plant will go live in August 2008 as a schedule. The plant will supply the products to Japanese seat manufacturers, planning sales of about 1.7 billion Yen in 2012.

Calsonic Kansei to jointly manufacture air conditioning units for Suzuki from 2009

  Calsonic Kansei established in November 2007 Calsonic Kansei Motherson Auto Products Limited, a joint venture with Motherson Sumi Systems Ltd. (MSSL). The joint venture partner is owned by Sumitomo Wiring Systems in Haryana State near New Delhi. Calsonic Kansei Motherson Auto Products was capitalized at 100 million Rupees (about 250 million Yen), in which Calsonic Kansei takes a stake of 51%.
  The new venture company will assemble air conditioner units at the existing plant of MSSL and supply the products to Suzuki from February 2009. About 150 million Yen was invested in the facilities, dies and so on. The venture company is expected to have an annual production capacity worth 160,000 vehicles in 2011. It is planned to produce radiators etc. in the future.

Kikuchi and Takao Kinzoku Kogyo to manufacture and supply auto body frame parts to Honda

  Kikuchi and Takao Kinzoku Kogyo established Global Auto-Parts Alliance India Private Ltd. in Rajasthan State in November 2007 (Kikuchi and Takao Kinzoku take a stake of 40%, respectively, and Honda 20% in the joint company). The new company will manufacture auto body frame parts for Honda from October 2008. It will have an annual production capacity worth 150,000 vehicles by 2010, planning to have sales of 97 million Rupees (about 3.3 billion Yen) in 2010. The total investment will reach 5.35 billion Yen.

Kiriu and Sumitomo Corporation to jointly manufacture discs, drums, knuckles and so on

  Kiriu and its parent company Sumitomo Corporation, in December 2007, singed the joint venture agreement with Hero Motor Limited, an Indian company. Kiriu and Sumitomo Corporation will take a stake of 33.4% respectively in the parts company established by Hero Motors in Haryana State. The parts company will manufacture and supply discs, drums, knuckles and so on to auto manufacturers of Suzuki, Renault/Nissan, GM, etc., and brake parts system suppliers such as Bosch. It plans 2015 sales of about 5.5 billion Yen.

Keihin to build a new plant in the second plant site of Honda and manufacture parts for fuel injection systems or air conditioner units

  Keihin will build a new plant in the premises of the second four-wheeler plant under construction by Honda in Rajasthan, and assemble and produce parts for fuel injection systems, or air conditioner units from 2010. The production scale will be adjusted to the annual production capacity of the Honda's second plant (Keihin plans to increase the capacity from 60,000 at the beginning to 200,000 by 2014).

JTECT to jointly manufacture electric power steering systems from the beginning of 2010

  JTECT established, in July 2007, JTECT Sona Automotive India Ltd. with Sona Koyo Steering Systems Ltd., an affiliate company in India. JTECT holds a stake of 20.1% in the affiliate company. The new venture company is capitalized at about 1.5 billion Yen, in which JTECT takes a stake of 51%. The venture plant is planned to manufacture column type electric power steering systems worth 600,000 light and medium vehicles made by Japanese auto manufacturers at the beginning of 2010. JTECT plans the 2010 sales of about nine billion Yen. The total investment will be about 3.5 billion Yen.

Suminoe Textile ties up with an Indian interior materials supplier in development, production and sales of interior materials

  Suminoe Textile announced, in March 2008, the alliance with Alps Industries, an interior materials supplier in India. Suminoe Textile will support Alps in development, production and sales of interior materials in India, and Alps will pay royalty to Suminoe Textile.

Seiren ties up with an Indian interior materials supplier in marketing, production and sales

  Seiren agreed the business alliance with BMD, an Indian auto interior materials supplier. The term of the agreement is two years from July 2008. Both companies jointly perform marketing activities, and Seiren supports BMD in the production engineering. The future plan includes establishment of a joint venture to begin manufacturing and selling seat materials for Japanese auto manufacturers. BMD has annual sales of about two billion Yen.

Diamond Electric to manufacture two million engine ignition coils per year from 2009

  In May 2007, Diamond Electric established DE Diamond Electric India Private Limited in Haryana State. The new company will begin operation in April 2009 and manufacture two million engine ignition coils per year for Japanese auto manufacturers. It will invest about 900 million Yen including the costs for site acquisition.

Takata to manufacture airbags, seatbelts and steering wheels at two bases in north and south India

  Takata will build new plants in Chennai of South India and near Delhi in North India to manufacture airbags, seatbelts and steering wheels. The Chennai Plant will start running from March 2009 and manufacture the products for Nissan. On the other hand, the Delhi Plant will run from April 2009 and produce the products for Honda and Suzuki. Takata will invest total 3.5 to 4.0 billion Yen. Takata manufactured seatbelts at the local parts supplier in India, in which it made an investment in 2000. It quit the joint business at the end of 2006.

TS TECH to build a new plant for four-wheeler seats in the premises of Honda's second plant

  TS TECH established TS Tech Sun Rajasthan in April 2008. TS TECH takes a stake of 60% and TS Tech Sun (India), its Indian subsidiary, takes a stake of 25%. The new company will build a plant in the premises of Honda's second four-wheeler plant, and manufacture seats for them from August 2009. The plant building will have an area of 11,500 square meters. The investment will be 770 million Yen in the first year.

Teikoku Piston Ring to manufacture cast-iron cylinder liners from 2009 at an annual production scale of 3.6 million cylinders

  Teikoku Piston Ring, in November 2007, established TPR Autoparts (India) Private Ltd. in Rajasthan. The new company will manufacture 3.6 million cast-iron cylinder liners per year and supply the products to local automotive manufacturers. The total investment is 1.9 billion Yen. Teikoku Piston Ring aims to achieve annual sales of 1.2 billion Yen by 2010.

Tokai Rubber begins manufacturing automobile hoses in 2007, planning to manufacture anti-vibration rubber in 2010

  Tokai Rubber began to manufacture various types of automobile hoses at Tokai Imperial Rubber India near Delhi, North India, in April 2007. Tokai Rubber will supply the products mostly to Japanese auto manufacturers, aiming for sales of 1.2 billion Yen in 2010. The new production base started running. Tokai Imperial Rubber was established in November 2005 and capitalized at about 700 million Yen (Tokai Rubber takes a stake of 60% and Imperial, a local hose supplier, 40%).
  Tokai Rika plans to build another new plant near Bangalore in South India in 2010, and to supply the products to Japanese auto manufacturers in India. The investment is estimated from two to three billion Yen. In May 2008, it established an anti-vibration prep room in India and began study the details of the plant.

Tokai Rika to manufacture switches, seatbelts, key sets and so on for Toyota low price vehicle EFC

  Tokai Rika will establish Tokai Rika Minda India Private Limited near Bangalore, South India, in September 2008. It will be capitalized at about 1.3 billion Yen, in which Tokai Rika will take a stake of 70% and Minda 30%. Minda is also the venture partner of the existing plant in India. The new plant will start running in November 2010, and supply switches, seatbelts, key sets and so on for EFC (Entry Family Car), a low price vehicle, which Toyota plans to produce at the second Indian plant. The total investment will be 2.4 billion Yen. Tokai Rika aims for sales of about three billion Yen in 2013.

Toyoda Gosei to manufacture steering wheels and airbag systems at its third plant in India

  Toyoda Gosei, in April 2008, established Toyoda Gosei India Pvt. Ltd. in Rajasthan, North India. The new company was capitalized at about 1.1 billion Yen, in which Toyoda Gosei takes a stake of 95% and Toyota Tsusho 5%. The new plant will start running in April 2009, and manufacture steering wheels and airbag systems for Japanese auto manufacturers. Toyoda Gosei plans 2010 sales of 750 million Yen.
  This new production base in India is the third one for Toyoda Gosei, following the plant which manufactures safety systems and interior/exterior plastic parts in Karnataka, South India, and the body sealing plant in Uttar Pradesh, North India.

Nissin Kogyo establishes brake parts manufacturing company, which will start running in October 2008

  Nissin Kogyo established NISSIN BRAKE INDIA in the suburb of Delhi. Nissin Kogyo will make an investment of 1.6 billion Yen and manufacture brake master cylinders & master power systems, disk brake, etc. from October 2008. The new company will supply the products mostly to Honda, expecting to have sales of two billion Yen in 2010.

Nissin Electric undertakes thin film coating of auto parts etc. at its joint venture on consignment

  Nissin Electric, in November 2007, established Nissin Advanced Coating Indo Co., Ltd. with Samvardhana Motherson Finance Limited, a core business of the Motherson Group, an Indian auto giant. Since March 2008, the joint venture has undertaken thin film coating of tools, dies and machine parts (titanium nitride thin film coating etc.) on consignment mostly for automotive related companies. Nissin Advanced Coating Indo was capitalized at 100 million rupees (about 286 million Yen), in which Nissin Electric takes a stake of 51%. Nissin Electric aims for 2008 sales of about 100 million Yen).

Nisshinbo to manufacture 1.9 million brake friction materials per year at the technical licensed plant

  Nisshinbo will install the latest equipment in the plant built by Rane Brake Linings in Tamil Nadu to which the technical license was granted by Nisshinbo. Rane plans to spin off the brake business into a separate company and take the company public within 2008. Eyeing the listing to the stock exchange, Nisshinbo will raise the current stake of 10% to around 25%.

Nippon Sheet Glass to manufacture 500,000 sheets of repair front glass per year at its British subsidiary Pilkington

  The Pilkington Group Ltd. is a British subsidiary of Nippon Sheet Glass. The Pilkington Group will build a new repair glass plant in Vishakhapatnam in the east coast of India. The Pilkington Group will spend about 15 million Euros for construction. The plant will go live in summer 2008 and manufacture 500,000 sheets of repair front glass per year. It will import the material for the products, i.e., sheet glass, from the South-East Asian bases of Nippon Sheet Glass and so on. In the future, the Pilkington Group aims to enter into the new car glass market.

NSK begins joint production of automotive bearings, planning a monthly production of 500,000

  NSK established NSK-ABC Bearings with ABC Bearings, a local bearing supplier to which NSK has given technical supports since 1998. NSK-ABC Bearings began production in January 2008. NSK-ABC Bearings was capitalized at about 1.3 billion Yen, in which NSK takes a stake of 75% and ABC 25%. The first investment was 1.3 billion Yen. The venture company will be financed with total two billion Yen by 2010.
  NSK-ABC Bearings will procure most materials locally to reduce the net cost to sharpen its competitive edge against European precedent suppliers. It will start production of 80,000 to 90,000 bearings per month, planning to increase the monthly production to 500,000 in one to two years.

Nippon Tokushu Toryo and a Switzerland company to jointly manufacture sound-proof materials for 500,000 vehicles from 2010

  Nippon Tokushu Toryo will manufacture sound-proof materials from 2010 at Rieter Nittoku Automotive Sound-Proof Products India which will be established with Rieter Automotive Systems, a Switzerland sound-proof materials supplier. It will be capitalized at 600 million Yen, in which Nippon Tokushu Toryo will take a stake of 49% and Rieter 51%. The venture company will have a plant near Chennai, expecting to receive orders for the products at 500,000-vehicle scale per year from two Japanese auto manufacturers.

Nippon Bee Chemical manufactures auto plastic parts coatings

  In July 2007, Nippon Bee Chemical, wholly owned by Nippon Paint, established BNB Coatings India Limited with Berger Paints India Limited, an Indian coatings supplier. BNB Coatings India was capitalized at 90 million rupees, of which Nippon Bee Chemical made an investment of 51%. The joint venture has operated at an annual production capacity of 400 tons and supplied most products to Japanese and Korean auto manufacturers since December 2007. It aims for 2010 sales of one billion Yen.

Furukawa Electric begin production of wire harnesses and supply them to Maruti Suzuki etc. from September 2009

  Furukawa Electric and the Minda Group in India jointly established Minda Furukawa Electric Private Ltd. in August 2007. Minda Furukawa was capitalized at about 1.16 billion Yen, in which the Furukawa Electric Group takes a stake of 51%. Minda Furukawa Electric will have a plant near New Delhi, which will go live in September 2008. The venture will manufacture and sell wire harnesses for Japanese auto manufacturers such as Maruti Suzuki. Eyeing production of airbag steering wheel systems, rolls, connectors, and so on, the 2010 sales target is set at about five billion Yen.

Bellsonica manufactures auto body parts for Suzuki

  Bellsonica established Bell Sonica Auto Component India Limited, in which Bellsonica takes a stake of 70% and Maruti Suzuki 30% (capitalized at 120 million rupees). At the end of 2007, Bellsonica began production of auto body parts such as pillars and side members for Suzuki at the new plant. Bell Sonica Auto Component is planned to manufacture lightweight parts made from high-tension steel sheets from 2008, expecting to have sales around 2.5 billion Yen in 2009. The initial capital investment was over three billion Yen. The new company is the first overseas operation for Bellsonica.

Mitsuba begins production of power window motors etc. at the new Haryana Plant in North India

  In December 2007, Mitsuba began production of two-wheeler generators and four-wheeler power window motors at the new plant in Haryana, North India. Mitsuba supplies the products to Japanese manufacturers, planning to have 2009 sales of 10.2 billion Yen. The new plant plays a role of the base to respond to the production expansion plans by Japanese auto manufacturers in North India (the Mitsuba's existing plant stands in Chennai, South India).

Yachiyo Industry to build a new production base for plastic fuel tanks for Honda

  Yachiyo Industry will establish its subsidiary (the company name is to be decided) near the second four-wheeler plant which is under construction near Delhi by Honda. The plant is the Yachiyo's first base in India. It will manufacture plastic fuel tanks from January 2010. The new company is capitalized at about 800 million Yen, in which Yachiyo Industry will take a stake of 99.9%.

Yamashita Rubber to begin manufacturing anti-vibration rubber in 2010, and supply the product to Honda

  Yamashita Rubber will begin to manufacture anti-vibration rubber including engine mounts etc. in India in 2010 to catch up with the expansion of production by Honda there. The new plant is likely to be controlled by Y-TEC Co., Ltd. (Thailand), which controls Asian region business (except Japan and China).

U-Shin builds a new plant for key sets and air conditioner switches in South India as well

  U-Shin invested 360 million Yen in Jay Ushin Ltd., its joint venture with an Indian company, to build a new plant in Chennai, South India. The construction completed in September 2007 (Jay Ushin has plants mostly in North India). U-Shin plans to assemble and supply key sets and air conditioner switches to Hyundai Motor, Mitsubishi Motors, and so on. It aims to receive orders from the joint venture plant of Nissan and Renault which will start running in 2009.

Source: news release by each auto parts supplier and press reports

Strengthening production capacity and expansion of production items: Denso to manufacture airbag ECU

  There is a wave of production capacity expansion of the existing Indian production bases: H-One will build a new plant building for auto body frame parts; Koito Manufacturing, a new plant for head and sign lamps; and Sanden, a new plant for compressors for auto air conditioners. NHK Spring will double the production capacity for springs and stabilizers, and Moriroku for interior/exterior plastic parts.

  Japanese auto parts suppliers expanded production items: Denso will begin to manufacture airbag ECU (electric control unit); and NSK will manufacture electric power steering systems. Nitta has established the start-to-finish production system for engine timing belts.

Japanese auto parts suppliers to strengthen production capacity for their India production bases and expand production items

(Movements for about last one and half year from 2007 to middle of July 2008
described in the Japanese phonetic order of Japanese auto parts suppliers)

Ichiko Industries to strengthen the mirror business with an Indian company, while expanding collaboration of the lamp business

  Ichiko Industries will strengthen the collaboration with FIEM, an Indian company. Ichiko Industries has given FIEM technical support for the mirror business, and FIEM has supplied Ichiko Industries with mirror glass sheets. FIEM will increase the supply by three times within 2009 to 100,000 sheets. Ichiko Industries will contract out part of assembling mirrors to FIEM.
  Ichiko Industries will expand the technical licensing to the lamp business within 2008. Ichiko Industries will ship core parts such as light sources to FIEM, and FIEM will assemble and supply small lamps to Ichiko Industries' customers, i.e. Japanese auto manufacturers, and others.

H-One to build a new plant with an annual production of pressed parts for 50,000 vehicles for the new plant of Honda

  H-One will newly build the second plant of H-One India PVT., Ltd. which manufactures auto frame parts. The plant will stand in the neighborhood of the Honda's second four-wheeler plant which will start running in 2009. The plant will be initially capitalized at about 700 million Yen. H-One will build a plant with a floor area of 7,000 square meters in the first phase. First, H-One will construct welding and assembling lines for pressed parts, and then will consider installing press machines in reaction to the increase of production at the Honda's second plant. The initial annual production will be worth 50,000 vehicles (the first plant of H-One India has a capacity to produce pressed parts for 150,000 vehicles per year).

EXEDY will strengthen the production capacity for MT clutches by 10%

  EXEDY will strengthen the MT clutch production capacity of Ceekay Daikin, its venture company, by around 10% in autumn 2008. EXEDY, thereby, will expand supply the products for the Nano, the Tata's low price vehicle, and Japanese auto manufacturers and GM as well (it has a plan to raise the stake in Ceekay Daikin from the current level of 32% to respond to the future market growth and increase in AT (automatic transmission) model vehicles).

Koito Manufacturing's second plant starts running, and it doubles production of head and sign lamps

  Koito Manufacturing invested 1.7 billion Yen in India Japan Lighting Private Limited (IJL), a 50-50 joint venture with Lucas TVS of England, and built the second plant in Bawal, Haryana. Since autumn 2007, the plant has manufactured 500,000 head lamps and 250,000 sign lamps per year and supplied most products to Maruti Suzuki.
  The first plant of IJL stands near Chennai, Tamil Nadu, with an annual production capacity for 400,000 head lamps and 300,000 sign lamps. It has supplied the products not only to Maruti Suzuki but also to Toyota, Honda, Tata Motors and so on. After the second plant starts running, the annual production capacities for head and sign lamps are 900,000 and 550,000 scales, respectively, which are equal to nearly twice of the previous scales.

Sanden to increase annual production capacity by seven times to one million car air conditioner compressors

  Sanden invested 1.5 billion Yen in Sanden Vikas (India) Private Ltd., a venture company with the Vikas Group, and build a new plant to produce car air-conditioner compressors in the vicinity of the existing plant in New Delhi. The plant is planned to run at the beginning of 2009. In 2011, Sanden will increase the annual production capacity in India by about seven times over 2007 to one million in line with the plan to expand the Indian market share to 30%. Sanden plans to also manufacture variable capacity type compressors, which are supplied from the European plant so far.

Denso to produce airbag ECU

  Denso will produce airbag ECU (electric control unit) at Denso Haryana Pvt. Ltd., which manufactures fuel pumps etc. (according to the announcement in October 2007). India is expected to have more airbag-equipped vehicles; therefore, Denso will increase the local capacity to supply the products.

Toyota Tsusho obtains a new plant site near the Toyota plant, and to expand the steel sheet processing business

  Toyota Tsusho obtained a plant site in the suburb of Bangalore, India, in September 2007. It is the vicinity of the Toyota Plant and the lot area is 220,000 square meters. To catch up with the expansion of production by Toyota in India, Toyota Tsusho plans to build a new plant to process steel sheets etc. The schedules of groundbreaking and so on are to be determined. Toyota Tsusho bought the new plant site, because the existing plant (120,000 square meters) for processing steel sheets in the same region is crowded and does not have enough space to expand the plant.

NSK begins to manufacture electric power steering systems in May 2008

  NSK invested about 800 million Yen in Rane NSK Steering Systems Ltd. (a 50-50 joint venture with the Indian Rane Group), which jointly manufacture energy absorption type steering columns, non-tilt steering columns and so on. NSK built a new electric power steering system plant in Haryana, which started running in May 2008. The annual production capacity is worth 200,000 vehicles.

Nitta begins start-to-end production of engine timing belts

  Nitta established the start-to-finish production line for engine timing belts including the pre-process of materials in the Indian Plant of Gates Unitta Asia (Nitta takes a stake of 49%), a joint venture with the US Gates Corporation (according to the announcement in July 2007; for the information, the venture company has had only post-processing such as cutting). Nitta plans to expand the plant.

NHK Spring to double production capacity for springs and stabilizers by 2010 or 2011

  NHK Spring invested about three billion Yen in NHK Spring India Ltd. to add another line in the second plant in North India. NHK Spring first will run the both Manesar and Malanpur plants at their full capacity within 2008; thereby, the Manesar plant will have an annual production of two million springs, and the Malanpur Plant one million stabilizers. Next, NHK Spring will start operation of the new line by 2010 or 2011 to double the production capacity to catch up with the increase of production by Japanese auto manufacturers, including Suzuki, Honda, Toyota and others.

Moriroku doubles the annual production capacity for interior/exterior plastic parts worth 100,000 vehicles, which are supplied to Honda

  To catch up with the expansion of production by Honda, Moriroku doubled the production capacity of Moriroku UT India Pvt., Ltd. for interior/exterior plastic parts worth 100,000 vehicles by extending the plant building and newly installing an injection molding machine etc. in autumn 2007. Moriroku will supply plastic parts, including instrument panels, console boxes, wheel caps and so on, for Honda Civic and City (its Japanese name is Fit Aria) made in India.

Source: news release by each auto parts supplier and press reports

Strengthening capital ties with Indian production bases and terminating ventures for solo advancement in India

  There are some noteworthy movements among Japanese auto suppliers. Some raised their ownership in local companies or their joint ventures and the others quit the joint venture relationship to advance solo in India.

  Shiroki financed the local company to which it has given technical supports; Stanley Electric and Nishikawa Rubber raised their ownership respectively; Chuo Spring and Mikuni terminated the joint venture partnership respectively.

Japanese auto parts suppliers strengthen the capital ties with Indian production bases

(Movements for about last one and half year from 2007 to middle of July 2008
described in the Japanese phonetic order of Japanese auto parts suppliers)

Shiroki financed window regulator supplier to strengthen collaboration

  To get ready for the expansion of production by Japanese auto manufacturers, Shiroki will strengthen the collaboration with Technico Industries Ltd., an auto parts supplier in India to which Shiroki has given technical supports since 2004. Shiroki acquired 14% of the issued shares in August 2007. It exchanges personnel at the shop floor level and gives supports for development and production by product. Technico manufactures and supplies window regulators to Indian auto manufacturers and Suzuki.

Stanley Electric raises ownership in an Indian company and strengthens the lamp business

  Stanley Electric raised the ownership in Indian Lumax Industries Ltd. from 28% to 48% in February 2008. Stanley positions Lumax as a base for development, production and sales in India. In reaction to the expansion of local production by Honda and others, Stanley will strengthen the two-wheeler/four-wheeler lamp business. Stanley also plans to build new plants in South and East India (the schedule to start operation of these plants are to be determined).

Chuo Spring terminates joint venture relationship with a parts supplier of the Tata Group

  Chuo Spring, in May 2007, transferred its all equity shares in TC Springs Limited (TCS) to the joint venture partner, i.e., Tata Autocomp Systems Limited. TCS jointly manufactured coil springs, stabilizers and torsion bars. Chuo Spring transferred its 50% equity at 289 million Yen.
  TCS's business places emphases on Indian auto manufacturers. To expand the business with Japanese auto manufacturers, Chuo Spring terminated the joint venture relationship. Chuo Spring, however, will give TCS technical supports for the products supplied to Japanese auto manufacturers after the transfer.

Nishikawa Rubber raises the ownership to 20% in a joint venture which manufactures rubber/sealing parts

  Nishikawa Rubber made additional investment and raised the ownership to 20% in Anand Nishikawa Co., Ltd. (ANCO) which jointly manufactures auto rubber/sealing parts. In addition to involvement in sales and technology, Nishikawa Rubber will strengthen expansion in the Indian market through strengthening the involvement in the capital. With this additional investment, ANCO will become an equity method affiliate of Nishikawa Rubber. ANCO stands in the suburb of Delhi and supplies the products to Maruti Suzuki, Tata, Mahindra and others. It had sales of 990 million Rupees in 2007.

Mikuni terminates joint production of fuel supply systems, planning to advance solo in India

  Mikuni transferred its all equity shares worth 26% in Ucal Fuel Systems Ltd., a joint venture with Indian Carburettors. The transferee is the venture partner of this venture company. Their joint venture relationship, therefore, ended in April 2008. The shares were transferred at 182 million Yen. Ucal manufactured and sold fuel supply systems for four/two-wheelers. Mikuni judged the joint operation as ineffective to respond to the rapid growth of the Indian market.
  Mikuni plans to establish a sales company on its own within 2008. Till then, Mikuni will supply four-wheeler parts from neighboring regions to deliver the products to Suzuki. Mikuni will consider building an Indian plant in a couple of years.

Source: news release by each auto parts supplier and press reports

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