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Continental opens R&D, manufacturing site in India

Posted: 17 Jul 2008 ?? ?Print Version ?Bookmark and Share

Keywords:automotive R&D center? manufacturing plant? India market? automotive electronics?

Automotive supplier Continental AG has inaugurated its new electronic manufacturing facility and R&D center near Electronic City, Bommasandra, Bangalore, India. With a total investment approximately $51 million, the new facility will develop and produce electronic components for the growing auto electronic market in India.

The facility wild develop electronic components for all three Continental automotive electronics divisionschassis and safety, powertrain and interior. The new plant will also manufacture instrument clusters for passenger cars, commercial vehicles and two-wheelers, immobilizers, engine management systems for diesel and gasoline engines, electronic control units for power assisted steering and body control units out of the interior division.

"According to the forecast, from 2012 onwards nearly one out of two cars worldwide will be manufactured in Asia and much of the growth on the Asian auto market will come from the emerging markets like India and China," said Jay Kunkel, Continental Asia president and member of the automotive management board. "Also, in the next decade one of the main focuses of the automotive industry will be the so-called megatrend 'affordable cars', especially in the growth markets like India and China. The Indian emission norms and safety legislations are getting stricter, the vehicles of tomorrow will have more and more electronics built into them."

He added that the investment in the country reflects the company's strategy to build and strengthen its network and manufacturing operations in Asia. Continental targets to make 20-25 percent of its total sales in Asia 2015, Kunkel said.

Speaking at the launch of the new headquarters, Markus Distelhoff, managing director of Continental Automotive Components (India) Pvt. Ltd, said "The Indian automotive market is expected to grow at a CAGR of 15 percent. This phenomenal growth opportunity has made it strategically important for Continental to deepen our business in India. We aim to translate our extensive expertise into vehicle technology to provide affordable components and systems to the Indian market. Localization of the entire value chain of R&D, sourcing and manufacturing is our key focus for success in this market. The new plant shows the firm commitment of Continental to the Indian automotive industry and to create a strong footprint in India."

The automotive R&D and manufacturing facility has three surface mounting technology lines, four pre-assembly cells and sixteen back end cells. This manufacturing unit can accommodate 400 employees in the office area and the R&D center can accommodate another 400 engineers.

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