A Memorandum of Understanding (MoU) has been signed between the Karnataka government and Japanese Prefecture that ensures a boost to the Small and Medium Enterprise (SME) sector catering to the auto sector in Karnataka.
Mie Prefecture in Japan has signed an MoU with the Karnataka government on bilateral trade investments in the fields of automotive, machine and tools, electronics, information technology and aerospace among others.
Talking to Autocar Professional on Wednesday, Mie Prefecture governor Eikei Suzuki said that Karnataka houses popular Japanese auto companies like Toyota and Honda beside several Tier 1 component makers. With the growth of the Indian auto industry and global OEMs setting up base in the country, many of them in Karnataka, there is a need for high-tech SMEs to cater to their needs.
There are several high technology auto SMEs in Mie Prefecture that can cater to the needs of Indian OEMs and Tier 1s. Already many OEMs in Mie Prefecture have approached the Japanese government, expressing their interest to foray into Karnataka. “At present it is too premature to name them, but we are listing out their interests and weighing the possibilities of bringing them to India,” he added.
He also said he brought a 30-member delegation comprising those who play major role in the industrial sector in Mie Prefecture to see the possibility of setting up their shop in Karnataka. There are several auto players in the visiting Japanese team, he said.
To name a few, Sumitomo Wiring Systems (producer of wiring harnesses, connectors, ECUs, relay boxes and junction blocks for OEMs), Uesugi Co Ltd (auto parts recycler) and Santo Kogyoscho Co Ltd (machining glass assemblies for automobiles).
Suzuki also reiterated that this is the first Japanese business delegation visiting India after prime minister Narendra Modi’s visit to Japan two weeks ago to strengthen trade relationships.
In association with the Karnataka government and Bangalore Chamber of Industry and Commerce, Mie Prefectural Government and Japan External Trade Organisation (JETRO) have participated in a seminar on ‘Royal Road towards Biz Success - New Business Network with Mie, Japan’ in Bangalore where both highlighted their business strengths.
It may be noted that Karnataka houses around 270 Japanese companies, primarily in the automotive, electronics and manufacturing sectors.
With the Japanese government promising $ 35 billion support to India during the prime minister Modi’s visit, a Japanese delegation visiting Karnataka for business tie-ups is seen as a major bilateral development.