Automobile News and Analysis

Dunlop acquires Draftex an automotive seating company

Dunlop India has acquired 60% stake in Draftex a German company through a Maruitus based special purpose vehicle Wealth Sea. Draftex controls Henniges Automotive Grefrath GmbH which manufactures high end automotive seating systems. Dunlop also owns Schlegel Automotive, a UK based automotive sealing company. Henniges was sick for over a year, and Dunlop acquired and restructured it. Now it has received advances against sales of equipments to Audi,Volkswagen, BMW and Daimler.

Nissan Motors to expand dealership

Nissan Motors to expand dealership to 55 by 2012 is planning to open its Rajkot dealership by March 2010 and Vadodara dealership by June 2010. It may also open another dealership at Surat as well. Currently, the company is selling completely built units (CBU) Teana (a sedan), X-Trail (SUV) and it plans to sell sports car 370Z. It will also start producing locally Micra – a global compact car from May 2010.

Kiminobu Tokuyama- Mg.Dir

Indian Automakers to focus on China

Mahindra & Mahindra, Tata JLR and Bajaj Auto are trying to focus on China for various reasons. While for Tata JLR, China is largest car growing market when compared to India (which is roughly 6 times larger than India). It is planning to increase its sales office in China, despite its constraints to cut costs due to larger market in China for luxury cars. M&M which has two production units in China will see more opportunities as market for efficient geared tractors is growing at rapid pace making it second largest market in the world after India. Chinese government is providing subsidies to modernize farm equipments in effect to reduce urban migration through development of rural economy.

Leading Auto Component players to diversify

Bharat Forge, Sundaram Fasteners are foraying into other ventures to resist the cyclic pressure of auto business. Bharat Forge is to manufacture wind turbine components and also to make now specialized products for railways, marine, aerospace, oil and gas and construction sector. SFL is already in aerospace components – fasteners (which has tough quality audits) is considering other engineering ventures. Wheels India had already diversified last year into making structural components for wind turbines. The current recession had shaken and tested them to their limits. Export oriented units have badly suffered and many have stopped production.