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Magna International is setting up two new facilities in Sanand, Gujarat, as the Canadian auto components giant continues to expand its engineering and manufacturing footprint.
On commissioning, the company’s total number of manufacturing locations in the country will rise to 11.
The company, however, did not disclose the investments it would be making in the two facilities.
“We are positioned to grow with the market. These facilities will help in meeting the demands of the growing automotive sector in the country,” Deval Desai, executive director and country manager India, Magna International, told visiting journalists.
At its first facility — a 2.15-lakh sq ft plant, employing about 200 people — the company will make complete seat systems for a leading automaker, Desai said, declining to name the client.
At its second unit, Magna will manufacture body and chassis systems for multiple customers. The 3.56-lakh sq ft plant will employ about 400 people.
The new facilities would commence volume production in 2015, he said.
India sales expected to rise The company is expecting its India sales to rise more than six times to $300 million in 2016 from about $50 million in 2013.
“Primarily, growth will come from metal stamping, body and chassis, power train and seat manufacturing,” Desai said. At present, Magna’s presence in India includes a 2.79-lakh sq ft body and chassis plant in Pune, a 2.25-lakh sq ft body and chassis plant in Chennai, a seating design and engineering centre in Pune and a vacuum pump manufacturing unit in Bangalore.
The company, which has General Motors, Volkswagen, Tata Motors and Mahindra & Mahindra as clients, employs 1,600 personnel in India.
Separately, Magna has entered a 50:50 joint venture with Tata AutoComp Systems to develop seats for commercial vehicles in India.
Tie-up with Tata AutoComp The venture will focus on developing seats for commercial vehicle manufacturers and buses, Magna International Chief Technology Officer Swamy Kotagiri said.
The venture, to be headquartered in Pune, will provide seats to future Tata Marcopolo products and other Tata commercial vehicles, Kotagiri said.
Magna has also won an order from Mahindra & Mahindra to develop a ladder frame for a new vehicle.
The company did not reveal specifics of the order.
(This correspondent was in Detroit to cover the Battery Show at the invitation of a number of auto firms).
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