Continental breaks ground for new powertrain plant in Talegaon

A bullish-on-India market Continental today had the groundbreaking of its greenfield plant in Talegaon, Pune, dedicated to its powertrain business. Around 30 million euros (Rs 240 crore) is the planned investment in infrastructure and buildings until 2020.

While the construction phase has already been initiated, production start is scheduled for early 2020 for various drivetrain products including engine management systems, sensors and actuators as well as fuel and exhaust management components, for passenger cars, two-wheelers and commercial vehicles.  

During the groundbreaking ceremony, Klaus Hau, executive vice-president – Powertrain Components Business Unit, Powertrain, said: “India plays a central role in our global growth strategy. Due to the increasing stringent emission legislation in the automotive market, including two-wheeler market, we are expecting a growing demand of low-emission technologies. Through this investment, we are expanding our involvement in this strategicimportant market, thereby ensuring that we will better satisfy the customers’ growing demand”.

The Powertrain group of Continental  offers efficiency solutions for the conventional combustion engine, the exhaust after treatment as well as for the broad field of vehicle electrification.  

Prashanth Doreswamy, Market Head, Continental India and managing director, Continental Automotive India, commented: “This investment reinforces our commitment to the Indian market. Continental has been growing ahead of the market in India. To continue doing so, we need to invest both in technologies of tomorrow, and expand our reach in the market. With this investment in our Powertrain business, Continental will better support India’s drive for cleaner air.”

Continental is now looking at an overall investment of "higher, three-digit amount in crores. After the Powertrain plant goes on stream in 2020, the company plans to rename its other existing business units.  

Continental’s Powertrain business develops and produces efficient system solutions for vehicle powertrains to optimise fuel consumption. The comprehensive range of products includes petrol and diesel injection systems, engine management and transmission control, including sensors and actuators, exhaust-gas after-treatment technologies, fuel supply systems, and components and systems for hybrid and electric drives. Powertrain employs more than 40,490 people worldwide and, in 2017, recorded sales of about 7.7 billion euros (Rs 58,858 crore)

Continental’s India innings
Continental has invested approximately 260 million euros (Rs 2,100 crore) in India during the 10-year period from 2008 for its various businesses. The company is supporting all key automotive customers in India transition to BS VI emission standards. They continue to make investments in enhancing combustion engines and electro-mobility. 

In 2018, Continental announced investments in India, on a high three-digit crore rupees level until 2020, and a plan to increase headcount to 10,000 in the same period. On 11th December 2018, Continental had also announced the groundbreaking of another greenfield facility in Pune to manufacture premium surface materials for the automotive interiors, with an investment of about 22 million euros (Rs 180 crore). The company also recently announced an additional R&D facility in its existing automotive plant in Gurgaon.

Continental has been present in India for close to 50 years, through technology partnerships (Continental Tires since 1974) and joint ventures for its various businesses. Today the Tier 1 automotive supplier, tyre manufacturer and industrial partner operates across India with over 8.000 employees across 15 locations, including eight plants that cater to the Indian market, and a Technical Center that supports Continental's global R&D activities.

Also read: Interview with Dr Dirk Leiss, chairman of the executive board, Benecke-Hornschuch Surface Group, Continental: "We will be targeting the passenger car and 2-wheeler segments  with our made-in-India artificial leather."