In India, the FY2011(from April 2011 to March 2012) automobile production volume was 4.04 million units, new vehicle sales were 3.43 million units and exported automobiles were 600,000 units. Both production and sales volumes have grown to sixth in the world and new vehicle sales in FY2012 are expected to total 3.77 million units. Although the growth rates of new vehicle sales in FY2011 and FY2012 have slowed down to single digit, the demands are expected to increase in the medium- and long-term, with expanding middle-income group.

 OEMs, therefore, are raising CBU production capacities. The largest OEM in India, Maruti Suzuki, plans to launch a new plant and increase capacities at existing facilities, which should add 500,000 units to make the overall capacity to two million units/year by 2015 or 2016. Toyota plans to increase the capacities at its two existing plants by a total of 100,000 units to raise the annual output capacity to 310,000 units in 2013. In 2012, Nissan doubled the capacity at its JV with Renault to 400,000 units/year.

 In response to such moves, Japanese parts suppliers are launching new plants, increasing production capacities and product items at their existing plants and strengthening development operations. Areas of their activities have expanded nationwide: North India, where Maruti Suzuki, Honda and other OEM have plants, including New Delhi, its adjacent Haryana Province and Rajasthan Province; South India including Tamil Nadu Province, where Nissan/Renault, Hyundai and Ford have plants and Chennai City is located, and Karnataka Province, where Toyota has plants and Bangalore City is located; and Mid India including Maharashtra Province, where Tata Motors, VW and GM have plants and Mumbai City and Pune City are located, and Gujarat Province, where Suzuki, Tata Motors and Ford have plants. Some parts suppliers concurrently strengthen their operations in the North and the South, and others have plans to transfer production of some products to India.

 The following report covers recent developments of Japanese parts suppliers in India, based on information for approximately one year up to early November 2012.