Avtec bags GM order for 166,000 transmissions.

Avtec, the engine and transmission manufacturing arm of Hindustan Motors, has bagged a massive order from General Motors (GM) for 166,000 transmissions a year, from 2010. Avtec will produce three variants of a five-speed manual transmission for GM’s upcoming small car, the M300. The different variants are to cater to different engines with varying torque requirements. “While the transmission casing will remain the same, the internal design and materials may vary depending on the application.” The M300 is expected to come with three engine options — 1.0 and 1.2-litre petrol and a 1.0-litre diesel. India will be the global base for the new powertrains and a large chunk of Avtec’s volumes are expected to be exported. Avtec has been producing engines and transmissions for GM and Ford in India. However, both GM and Ford are planning to set up engine plants of their own in the future which means Avtec could eventually lose the engine business. However, the company is now focusing on building its transmission capacity, as gearbox production will still be outsourced to Avtec from both GM and Ford as both these majors have no plans to set up a transmission unit. “We see ourselves as a dominant transmission supplier in the future,” an official from Avtec said. FACTFILE Avtec is the flagship business of the Hindustan Motors Group managed by CK Birla and ACTIS, UK. It is involved in the manufacture and supply of engines and transmissions and also manufactures and exports automotive components including cylinder heads, cylinder blocks, connecting rods, crankshafts, camshafts, hubs and synchro sleeves, round gears, shafts, transmission cases and covers. It is the largest manufacturer of powertrains, transmissions and auto components in India. Currently it supplies engines to Ford and GM.