Japan¡¯s JTEKT to Kick Off Auto Parts Plant in India

Japan¡¯s JTEKT to Kick Off Auto Parts Plant in India A Slew of new models by Japanese car makers such as Honda, Suzuki, Nissan and Toyota is triggering off action on the component front as well. The latest to join the bandwagon is Japanese component major JTEKT Corp (company formed by a merger of Koyo Seiko and Toyoda Machine Works). The company already has a joint venture with Surinder Kapur-promoted Sona Group for manufacturing of steering systems called the Sona Koyo Steering Systems. In a bid to expand its presence further, Sona group will float a new joint venture with JTEKT which would focus on manufacturing advanced electronic power steering. These steerings would be made keeping in mind the new models to be introduced by Japanese automotive majors such as Toyota, Suzuki, Nissan and Renault. According to component industry sources, both joint venture partners will hold 50% stake in the company. The partners would make an initial investment of Rs 120 crore.The company is likely to set up its plant in the Bawal area of Haryana and start commercial production by early 2009. Sona Group officials were not available for comment. Industry sources believe that the company is looking at a turnover of Rs 300-400 crore by the third year of its commercial production. The joint venture will cater to both the domestic market as well as exports. Japanese component companies are aggressively looking at a bigger share of the Indian market. Most of these companies initially entered the country as technical partners and had licensing agreements with local companies. Auto analysts believe that with India becoming one of the fastest growing auto markets and growth figures slumping in developed countries, most component companies are making a beeline for India. JTEKT Corporation has a consolidated sales turnover of 1,025,297 million yen. The company manufacturers steerings and driveline components, bearings and machine tools. Sona Group¡¯s aggregate turnover currently exceeds $140 million with exports of $20 million. The group manufacturers a range of products which include steering and driveline components for the automotive OEM segments.