The Hindu Business Line : Showa to set up power steering unit in Noida

Steering times
New unit to make pinion-type electronic power steering systems, currently not available in India.
To supply steering systems to Honda, Suzuki.

New Delhi , March 22

Japan-based auto components maker Showa Corporation is set to establish its second company in India to start manufacturing power steering systems for passenger cars. The firm will invest about Rs 70 crore to set up a facility in Noida, near New Delhi, and will establish a wholly-owned subsidiary for the same.

According to sources, the company plans to make pinion-type electronic power steering systems, currently not available in India. Sources add that with Showa being a major supplier to Honda Motor Corporation, the facility is likely to cater to demand primarily from Honda Siel but also from Suzuki. Honda Siel's passenger car unit is also located in Noida, where the company makes the Honda City and Honda Accord. The company is set to roll out the Honda Civic in a few months. Honda is a shareholder in Showa Corporation.

Showa's entry in this segment may not impact the market shares of domestic manufacturers of power steering systems, at least in the near future. At present, Sona Koyo Steering Systems, a joint venture between the Sona Group and Koyo of Japan, is the largest manufacturer of electronic power steering systems for the passenger car segment. The company does not supply steering systems to Honda. Other players in the segment include ZF Steering and Rane.

This will be Showa's second foray in India as it already has a joint venture with the Munjals, called Munjal Showa. Munjal Showa manufactures shock-absorbers, front-forks, struts and window balancers/gas-springs for two-wheelers and four-wheelers, and caters primarily to original equipment manufacturers. Its clients include Hero Honda (which accounts for the bulk of its sales), Honda Motorcycle and Scooter India, Kinetic Motors, Maruti and Honda Siel.

More Stories on : New Projects | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page