Date:19/12/2007 URL: http://www.thehindubusinessline.com/2007/12/19/stories/2007121951210300.htm

Back Continental to make customised products for SMEs

Invests Rs 100 cr for automotive electronics plant

K. Giriprakash

Bangalore, Dec. 18 Global auto parts’ giant Continental Corporation will make products specifically for the small and mid-sized car segment in India and has invested about Rs 100 crore to set up an automotive electronics plant in Bangalore.

Continental’s Managing Director for automotive systems business in India, Dr Markus Distelhoff, told Business Line that his company has developed strategies and products suited for the Indian market. He said in the next decade one of the main focuses of the automotive industry will be the “so-called affordable cars”, especially in growing markets like India and China. “Our solution is to translate our expertise in vehicle technology into low cost, affordable components and systems that are tailored to the Indian market,” Dr Distelhoff said.

Recent acquisitions

Continental Corporation, which is among the top five auto parts’ companies in the world, recently took over Siemens VDO Automotive business including its Indian operations. Siemens VDO’s vast experience in the Indian market has widened Continental’s offerings to its Indian customers.

Dr Distelhoff pointed out that the production of cars with a price of €10,000 will increase 70 per cent to about 11 million units by 2017. “To cope with this demand, we have to focus on solutions for the Indian market; people want safe, yet affordable cars,” he said. He said the joint ventures with Rico as well as with Ashok Leyland in India will attract fresh investments while its own operations in the country will also be expanded. “Our local engineers understand our markets and are working on solutions that are optimised for the Indian market,” he said.

He said this market is of interest to the ContiTech division, both as a manufacturing location and as a market for its products. He said the Rs 100 crore investments in the automotive electronics’ plant in Bangalore, which will also house a R&D centre, is one of the major investments for the company in India.

Continental including its joint ventures has a total of six manufacturing facilities and three R&D centres in India. Continental Corporation with annual sales of €25 billion employs about 1.5 lakh at 200 locations in 36 countries.