Magneti Marelli, the Italian auto component major, officially inaugurated its new plant for manufacturing automated manual transmission in Manesar. With this, the total number of plants that Magneti Marelli has in India goes up to 11.
The new plant, situated on an area of 7,500 square metres, has a maximum capacity of 280,000 units in a year. The plant has already started manufacturing of AMT in July and is currently producing 120,000 units annually.
"This facility has been created to address the growing market success that the AMT component has had in India over the past two years and to meet the demand from local carmakers regarding additional future implementations," the company said in a statement.
Currently Magneti Marelli supplies its AMT solution to Maruti Suzuki for Celerio and Alto K10, and Tata Motors for Tata Zest and Nano.
The company said it has invested Rs 150 crore in the manufacturing of the new plant. When fully operational, the plant is expected to employ around 115 people. Magneti Marelli, across all its plants in India, employs around 2300 people.
Till now, Magneti Marelli was importing AMT from its plant in Italy. However, the company said it will continue importing AMT's from its Italy plant to meet the demand in Indian market.
"This plant is one of its kind in India. We are probably the only manufacturer in India to have put up a separate plant for automated forms of transmission, AMT is one of them," said Saju Mookken, Country Manager & MD, Magneti Marelli India. "Not only India, we could also look at supplying other markets as well, if and when the supplies from Italy get saturated."
Mookken informed that at present, 4 to 5 percent of the passenger vehicle market in India has automatic transmission solutions, more than 50 percent of which is AMT. "We expect the overall automatic solution market to shoot up to 30 percent by 2020," he said.
Magneti Marelli said that it had sold more than 50,000 units of AMT in 2014. Even with the current utilisation, the plant is manufacturing almost double the units it has sold in India last year.
"If you look at the market for automatics it was just one percent a few years back, and it has already reached 5 percent. I hope the demand for AMT will continue to grow, said Mookken. "The point is the carmakers who have tested the products, will test on more products and other carmakers will also enter this arena. So, we created a capacity which we believe is the right one for the mid-term."
The company has said that it will double its revenues from India in the next three years and hopes AMT segment to be one of the main contributors towards this. In 2014, the company generated a revenue of Rs 1300 crore.
In March, Magneti Marelli inaugurated a plant for fuel injection for two wheelers, in a JV with Hero MotoCorp. Today, Magneti Marelli has 8 JVs in India across different product lines. The company is present in various auto segments like automotive lighting, electronic systems, powertrain, exhaust systems and suspension systems.