T. Murrali

Toronto, Oct. 9 Magna International, a Canadian automotive component manufacturer, plans to set up a window systems manufacturing facility for passenger cars in India. Magna International has decided to set up the facility through a wholly-owned subsidiary. Earlier it had planned on a joint venture with component manufacturers in India but the talks failed.

Speaking to a group of Indian journalists who are on a trip to Canada sponsored by Magna to visit its facilities, the Vice-President (Operations) of Magna Closures, Mr John O’Hara, said the decision was based on the orders Magna clinched from its MNC customers that are setting up a plant in India to launch compact cars by 2010.

Though the location and the investments for the greenfield plant were not finalised, it is understood that the facility would come up in Chennai due to logistics. The plant is expected to start production in early 2010 in time for the launch of the cars by its customers.

The new facility would come under Magna Closures, Magna International’s door module division, and supply window systems to start with, he said. Magna makes four varieties of window systems — single rail cable drum, dual rail cable drum, arm sector and quarter system. The Indian arm would supply single- and dual-rail cable drum initially to the customers. The company also sees opportunity for other models which would be introduced later, he said. Globally, Magna Closures holds about 5 per cent market share in window systems.

Market for door modules in India has picked up with several multinational companies setting up shop in the country. Also Indian passenger car segment has taken to systems and modules supplier and moved away from the conventional components supply to reduce the lead time to launch new models and to bring down assembling time. This made several automotive systems manufacturers to look at passenger car manufacturers to supply systems and modules.

Incidentally the German door module manufacturer Brose Group, which commands over one-fourth of global market share in window systems, was mulling options to set up a facility either through joint venture or wholly owned subsidiary. Sources in the know said the company has shelved the project for the moment.

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