Hitachi Automotive builds $50 million auto parts facility in Chennai, India

Friday, Apr 17, 2015

Hitachi Group has expanded manufacturing footprint of its auto parts business in India with the launch of a new production unit near Chennai.

The expansion is in response to growing importance of India in global automotive business. The group sees India as a strong base for its global strategy.

The Japanese industrial giant has commissioned a new plant, its second factory in India, under a subsidiary Hitachi Automotive Systems India (HASI), for manufacturing valve timing control (VTC) systems and ignition coils for passenger vehicle engines.

The new factory, which is expected to employ about 230 people initially, has been set up with an investment of Rs.313 crore and will begin production from October this year. The plant will serve customers in India and in other markets such as ASEAN, Brazil and Europe. Also, the unit will focus on sourcing parts from local vendors. “Global standard production lines will be introduced for producing VTC systems and ignition coils with global quality and pricing. Our product strategy in India is about supplying low-carbon technology products,” said Kunihiko Ohnuma, Chairman and CEO, Hitachi Automotive Systems. The first factory of its auto parts business is located at Pune under another subsidiary Hueco Eletronic India (HEI).

Hitachi group has 31 entities in India across business segments. Auto parts business has three companies — HEI, HASI and Clarion India.

Hitachi had devised three-pronged strategy to achieve strong growth in auto parts business by 2020. It is also evaluating opportunities to set up another factory under its subsidiary Clarion for making infotainment systems and products.

The automotive components and systems business in India will be strengthened in a wide range of areas.