Nexteer Automotive, a tier one automotive supplier committed exclusively to wheel-to-wheel advanced steering and driveline systems, today announced plans to expand its Indian footprint with a new manufacturing facility in Chakan, just outside of Pune. The new facility will allow Nexteer to better serve current
customers with a closer location and increased capacity. Nexteer also is opening a new customer service center in Bangalore and will be updating and expanding its current operations in Bangalore and Gurgaon.
“This investment in India will position Nexteer to become the leading supplier in the region,” said Robert J. Remenar, president and CEO of Nexteer Automotive. “While committed to our mature markets, a crucial part of Nexteer’s global growth strategy is focused on emerging markets supporting both global and regional customers. Already this year we have announced expansion in Poland, Brazil and now India.”
The new Chakan facility will encompass more than 75,000 square feet and will generate 150 jobs. Initially the facility will support Nexteer’s halfshaft, pump and steering gear business. The Indian market is expected to increase adoption of electric power steering (EPS) over the next five years, and Nexteer is equipping its operations for this future transition and expansion. New emission standards in India are driving the conversion from hydraulic power steering (HPS) to EPS. Today, halfshafts account for nearly 75 percent of Nexteer’s
business in India.
Nexteer recognized the potential growth of the Indian automotive market in 1995 when it opened its Bangalore plant. The company currently employs 600 people at two facilities in India.
“Nexteer’s business in India has grown significantly in recent years and we expect India to remain a high growth market for Nexteer for years to come,” said Madhav Kulkarni, managing director at Nexteer India. “Initially our
focus will be on meeting local customer demand but we believe this investment will have long-term potential to serve our global OEM customers on a much larger scale.”
Vehicle production in India has grown significantly in recent years. Total production output has risen by 74 percent between 2005 and 2009. During that same period, major global OEMs including Suzuki, VW, General Motors and Ford have announced significant manufacturing operations in the country. New OEM model launches, government incentive programs and the country’s robust economy provide the perfect conditions for continued growth.
