Global auto parts makers eye Pune

Several global auto-component manufacturers are looking at Pune as part of their India plan even as domestic auto-component industry in the region continues to reel under recession.

Three large European auto-component makers have set up facilities in the Pune belt in the last one year. While Italy-based leader in brake discs for automotive vehicles, Brembo, and Germany-based manufacturer of clamps, plastic tubing systems and connectors for auto and non-auto industry, Norma group, set up their facilities at Chakan and Talegaon, respectively in 2009, early this month another German firm, ZF group, inaugurated its 100% Indian subsidiary at Chakan.

“ZF group has a presence in India for close to three decades through joint venture manufacturing facilities for steering components, chassis and suspension parts. This new facility will cater to ZF’s off road division,” Hans Georg Haerter, chairman and CEO, ZF Friedrichshafen AG, said.

The company will make an initial investment of Rs 15 crore on the plant while it is planning another manufacturing facility at Ranjangaon, near Pune at an investment of Rs 35 crore with an eye on the commercial vehicle sector.

Brembo has invested Rs 100 crore at its Chakan plant whereas Norma group had announced an investment of €3 million in India operations to manufacture plastic tubing systems and clamps for the automotive sector.

Some of Brembo’s leading clients in India include Bajaj Auto, Kinetic, Piaggio, Suzuki, Yamaha, Honda and Royal Enfield. Norma has also announced setting up of an engineering centre that will support its global engineering projects.

“There is a strong focus on localisation of parts with vendors to give the cost advantage to the customers. Our Indian production portfolio will soon be followed by full power shift transmissions for backhoe loader and other products important to the India’s off-road market,” Klaus Sicker, vice-president and head, off-road division, ZF India, said.

ZF is targeting €200 million sales from Chakan plant over the next three years. The plant has an annual capacity of 10,000 axles and 10,000 powershift transmissions.

The Brembo facility will manufacture a complete product line of disc braking systems for scooters and motorbikes to serve the need of the manufacturers throughout India as well as overseas. In future the company will also utilise the facility for manufacturing parts of passenger cars and light commercial vehicles.