Magna International, world’s fourth-largest auto component company, plans to bring most of its component businesses to India by the year end.
MUMBAI: Looking at the explosive growth in the Indian auto industry, Magna International, world’s fourth-largest auto component company, plans to bring most of its component businesses to India by the year end, Frank O’Brien, executive vice president, Asia Pacific Region, said.
Since entering India with a sales office two years back, the $24-billion Canada headquartered has already bought three divisions —- power train, electrical system, and vision system divisions —- to India through three separate joint ventures, and is close to bringing in another six.
“By this year end, we hope to have joint venture in place for our stamping, steating, interior, and closure system. With this, only the roof systems division would remain unrepresented in India. But that is because the market is very small for these products here,” O’Brien said.
Magna International designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and contract manufacturers cars and light trucks.
It has over 200 manufacturing sites in 23 countries.
In India, Magna’s powertrain division has 50:50 joint ventures with Rico Auto (for oil and water pumps) and Amtek (for flexplate assemblies).
Similarly, its vision system division has a venture with Lumax to manufacture camera mirror, digital mirror, speaker mirror and electrochromatic mirror.
The company has a design engineering centre in Pune with about 100 engineers, where it plans to double headcount by the year end.
“Like we have done for the other divisions, the new businesses would also be bought here through a joint venture with local player,” O’Brien said.
Magna is also looking at ramping up its component sourcing from India.
By 2010, it plans to source $120 million worth of components from India, against $1 million its did in 2006.
g_rabin@dnaindia.net
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