Category — Automobile

India Grows as Global R&D Hub for Multinationals

The Nikkei Asian Review reports that numerous multinationals have chosen  India as an attractive R&D destination. More recently, taking advantage of employment costs, as well the availability of technical skills, many companies across a variety of industry verticals have begun to set up their R&D centers or have enhanced their existing facilities in India. IT consulting firm Zinnov estimates that by 2020, India’s R&D services market will more than double from the 2014 level to $38 billion.

Earlier this year, Huawei Technologies, the Chinese telecom equipment maker opened an R&D campus in Bangalore, with an investment of $170 million. The company plans to hire up to 5,000 engineers for the new center. Chinese smartphone maker Xiaomi said it will open an R&D center in Bangalore which would customize products to suit local demand.

Expecting its users in India to reach around 40 million by 2018, Twitter, the U.S. social network provider announced plans to set up a research and design center in Bangalore.

In efforts to expand its presence in South  Asia, German chemical company BASF opened a research and development center for agrochemicals in Lonikand near Pune in the western state of Maharashtra, this year in May. BASF’s global R&D center, which the company opened outside Mumbai last year is working to create innovative solutions, for example, for organic synthesis. Another outfit from Germany Mercedes-Benz Research & Development India, a Daimler unit, is adding  1,700 engineers to its R&D centers in India by 2016. Currently, it has about 2,300 engineers in Bangalore and Pune.

In May 2015,  Ford Motors declared it will invest $786 million in building an R&D center in Chennai, Tamil Nadu.  Other companies such as Broadcom, Amway and Robert Bosch, have announced similar plans to bolster their product development capabilities. And it’s not just big companies that are investing in Indian R&D, California-based Cohesity, a start-up that deals in secondary storage space,  is expected to invest $10 million over the next two years in research and development.

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December 3, 2015   No Comments

Isuzu Motors Sets Up R&D; Sourcing Subsidiary in India

Japanese automobile maker Isuzu Motors said that it had set up Isuzu Engineering Business Center India Private Ltd (IEBCI) which will be its base for research and development as also a sourcing base for components. Naohiro Yamaguchi, managing director of Isuzu Motors, India will also assume the role of Director, IEBCI with immediate effect, the company said in a statement.

Isuzu Motors India is setting up a new plant at Sri City near Chennai in the southern state of Tamil Nadu. The factory  is expected to go on stream next year, reports Business Standard. IEBCI will support Isuzu Motors India to achieve 100 per cent localization and will ensure adherence to stringent quality standards in sourcing parts and components for the company.

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December 3, 2015   No Comments

Ford Motors to Set Up Another Engineering and Technology Center in India

Adding to its previous recent investment in India of $2 billion, the Ford Motor Co confirmed fresh investments for setting up a new global engineering and technology center in Chennai, in the southern state of Tamil Nadu, while concomitantly expanding capacity at its existing manufacturing plant in Chennai, reports ET Auto.

Ford Motor Plant in Chennai

Ford Motor Plant in Chennai

“India is at the center of innovation at Ford and we are delighted to strengthen our presence with a new global engineering and technology center,” said Dave Schoch, president of Ford Asia Pacific. “This is the next chapter of our India journey. With these latest investments, we are making rapid progress in our vision of driving innovation from India to the world.” However, the amount of investment and the enhancement in production capacity of the plant was not disclosed.

Ford’s Chennai plant currently has an installed annual capacity to produce 200,000 vehicles and 340,000 engines. The company exports vehicles and engines made at its two facilities in India to as many as 50 countries.

DNA says that the new Ford campus will host operations of Ford Global Business Services in the areas of IT, Product Engineering, Finance and Accounting, Data Analytics, Manufacturing among others.

 

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December 3, 2015   No Comments

India Serves as Low-Cost Innovation Platform for Ford Africa

Ford Motor Co., plans to use low-cost engineering it learned in India to develop compact models for other emerging markets, executives said, emulating a strategy used by Asian rivals that outsell it in the world’s fifth-largest auto market, reports Reuters. Ford aims to expand market share from the current 3% with its first India-specific small car, the budget Figo Aspire, tagged at a starting price of $7,557. The fuel-efficient engine built for the Aspire will also be fitted into other vehicles Ford plans to export to Africa and Southeast Asia.

Figo Aspire

Figo Aspire

Compact cars, are key to the growth of automakers: global sales of such cars are expected to rise by more than a third to 11.4 million by 2020, according to IHS Automotive, and India is expected to become the world’s third-largest market by 2020, when sales of compact cars are expected to double to around 1.73 million.

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August 15, 2015   No Comments

LyondellBasell to Acquire SJS Plastiblends of India

Houston-based LyondellBasell Industries announced that it has entered into a definitive agreement for the acquisition of SJS Plastiblends Pvt. Ltd., a polypropylene compounds manufacturer, located in Aurangabad in the western state of Maharashtra, India reports CNN Money.

“This acquisition will expand our global PPC manufacturing footprint and allow us to better compete in the long-term growth of India’s automotive market ,” said Bhavesh V. (Bob) Patel, CEO and chairman of the management board of LyondellBasell.

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August 15, 2015   No Comments