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Carmakers in India have traditionally focused on manual transmissions, keeping in mind their customers' paranoia about mileage.
Years ago, Maruti put out an automatic Zen which got the cold shoulder from the market. Not much has changed since then, with only a handful of companies like Honda and Hyundai offering automatic options.
This hard reality has not deterred the US-based ancillary supplier, BorgWarner, from developing a small car automatic transmission, as part of a joint engineering initiative in the US, Europe and Japan. If the script goes according to plan, this product could find its way into India, China and Japan over the next four years.
Project on course
Mr Tim Manganello, Chairman and Chief Executive Officer, told a team of Indian journalists at BorgWarner's Michigan headquarters that the project was on course, though it was a bit too early in the day to discuss other details.
Incidentally, this is happening at a time when the company is in the midst of a China gameplan, where it has teamed up with 12 local automakers (including FAW, SAIC, Geely, Changan, Brilliance and JAC) to produce dual clutch transmission, or DCT, modules at a plant in Dalian, northeast of Beijing. This system is an advanced automatic transmission technology which will meet the needs of the buoyant Chinese car market.
“This is effectively small car technology which can work anywhere. In China, the focus is on fuel economy/efficiency and OEMs are designing smaller and more effective transmissions. The DCT technology will enhance their performance and assure greater efficiency,” Mr John Lewis, Senior Sales Manager of BorgWarner Drivetrain Systems told Business Line.
It is in this context that the mega plans for China could have interesting implications for India's automobile segment, which continues to steer clear of automatics. The DCT is more fuel-efficient than the traditional automatic and a production base in China could also mean a greater cost-competitive business model for BorgWarner. This benefit will then be put to good use in countries like India, where carmakers would be more inclined to using this option in a price-sensitive market.
Six entities in India
BorgWarner has six entities in India for its powertrain and drivetrain technologies. These include Turbo Energy, a joint venture with the TVS Group (Sundaram Finance and Brakes India) holding 67.4 per cent (plants in Chennai, Pulivalam, Paiyanur and Rudrapur); Drivetrain Systems where partner, Divgi has 40 per cent (Pune and Sirsi); Beru Diesel Start Systems, an alliance with the Jayant Group ((Talegaon near Pune); Thermal Systems (Chennai), Morse TEC (Kakkalur); and Emissions Systems in Faridabad.
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