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Manu P. Toms

Mumbai, May 27Increasing pressure on vehicle manufacturers in terms of emission control, fuel economy and input cost turns out an opportunity for plastic component makers. The European trend of plastic replacing metal in some of the vehicle parts is catching up in India as international joint ventures to make plastic fuel tanks and clutch systems, such as Yapp-Zoom Automotive Systems and FTE Setco, will become operational in the near future. Also, German-based BASF is setting up its engineering plastic plant in India.

FTE Setco Automotive, an Indo-German joint venture, will come out with plastic hydraulic clutch actuations systems from its Baroda plant in December this year. According to manufacturers, in their product, plastic replaces cast iron and makes the vehicle lighter by 2 kg. Clutch maker Setco’s existing clients — Tata Motors, Ashok Leyland, Eicher Motors and AMW — would source clutch actuation systems from the newly formed joint venture.

Germany-based FTE’s global clients, including Audi, Ford, Volkswagen, Mercedes-Benz, BMW, GM, Hyundai, Volvo, Skoda and Suzuki, would also source actuation systems from the joint venture for their future platforms.

“The Original Equipment Manufacturers (OEMs) are excited about the new product and see the benefit it has. Not only does it replace the current system in terms of weight but also increases the life of the system and removes inefficiencies. The OEMs understand this benefit and are working with us on various future platforms,” said Mr Udit Sheth, CEO, FTE Setco Automotive.

Yapp-Zoom Automotive System Pvt Ltd, a collaborative venture between Chinese fuel tank makers Yapp and Mumbai-based Zoom Developers, will start production of plastic fuel tanks in September 2009. The 2.5-lakh capacity plant is being set up in Chennai at the Ford’s supplier park. In Europe, US and China, about 70-90 per cent vehicles use plastic fuel tanks, the manufacturers claim.

“Though there is no major cost advantage, design flexibility, emission reduction and safety attract OEMs,” said Mr Anilkumar Menon, Vice-President, Zoom Automobile Ancillaries. Other than Ford, the company is in talks with Mahindra & Mahindra, GM and Volkswagen.

Buoyed by the huge interest shown by OEMs, the plastic component makers have high hopes of return. Setco hopes that the Rs 60-crore joint venture will fetch the company revenue of Rs 200 crore in five years while Zoom expects its Rs 56-crore venture to break even in the second year.

“The increased use of plastic for the weight reduction is a global trend. If 10 per cent weight is reduced, 25 kg of CO2 emission will be reduced in the lifetime of a car,” said Herman Althoff, BASF’s Group Vice-President, Asia Pacific. The company, which is setting up its engineering plastic unit in Thane, is associated with Tata Motor’s Nano project.

Another German chemical company Lanxess, with expertise in plastic/metal composite technology with polyamide used for making car roofs and brake pedals, also has greater plans for India.

More Stories on : Automobile Components | Plastics

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