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Manu P. Toms

Mumbai, Feb. 11 FTE Setco Automotive will start production of hydraulic clutch actuation systems in December this year. “We hope to supply actuation systems manufactured in India by December 2008 subject to approval of OEMs (original equipment manufacturers),” said Mr Harish Sheth, Chairman and Managing Director, Setco Automotive Ltd. The plant will be set up near Setco’s existing manufacturing facility near Baroda.

FTE Setco Automotive, the joint venture between domestic clutch manufacturers Setco and German-based FTE Automotive, which was formed a month ago, will be the pioneer in plastic hydraulic clutch actuation systems in India. FTE Automotive holds more than 50 per cent global market share of hydraulic brake and clutch systems.

“Currently we are working with the vehicle manufacturers because the clutch systems are tailor-made. The testing and validation will be complete in six months. Since it is an already proven product in the global market we hope to speed up the validation period,” said Mr Udit Sheth, Vice President-Business Development, Setco, who will be the CEO of the newly formed collaborative venture.

By adding actuation systems to its product portfolio, Setco is gearing up to provide complete clutch systems to OEMs. The company has already announced its plans to make clutch systems for passenger cars and LCVs. The Rs 200-crore Setco expects that this joint venture will bring in another Rs 200 crore to its kitty in five years’ time.

Setco, which manufactures clutches for medium and heavy commercial vehicles, has a client base including Tata Motors, Ashok Leyland and Eicher Motors and AMW. Apart from its existing customers, Setco is in talks with Mahindra and Maruti Suzuki for the supply of complete clutch system which combine both clutch and actuation systems.

“Currently the OEMs are not purchasing composite clutch actuation systems. They are buying bits and pieces. We will give them complete clutch systems,” said Mr Udit Sheth.

Plastic hydraulic clutch actuation system will make vehicles lighter by two kilograms, which would in turn reduce fuel consumption and emission. “The composite clutch system will reduce clutch failure and ensure driver comfort and longevity. The running cost of cars would greatly come down,” he said.

The global car makers including Audi, Ford, Volkswagen, Mercedes-Benz, BMW, GM, Hyundai, Volvo, Skoda and Suzuki, who are the customers of FTE Automotive, would source actuation systems from the joint venture for their future platforms in India, once the venture starts local manufacturing of plastic hydraulic clutch actuation systems, said Mr Harish Sheth.

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