Continental expands manufacturing and validation capabilities in India, targets increased localisation

June 15, 2012: Automotive supplier Continental has announced the expansion of its manufacturing and validation competence in India. Continental, under its Powertrain division sets up the new test and validation lab for Fuel Supply Systems at its Bangalore development centre, while two product lines for Fuel Rail Assembly and in-tank Fuel Pumps are being inaugurated at the Pune facility. The lab and the two new product lines are intended to attain Continental’s proposed goal of achieving the highest degree of localisation across the value chain and also to satisfy the increased demand from customers.

The new lines added at the Pune plant will have the capacity of producing a million additional units of fuel rail Injectors and fuel pumps of different range. The test and validation lab for fuel supply systems ensures local testing infrastructure and competence. As a result of the globally standardised testing and validation process at Continental, the results at the India centre can be shared and compared with other global locations, which will help OEMs.

According to Joerg Laatsch, Head of Business Unit Engines Systems India, “The localisation of the fuel rail assembly is a further milestone in coming closer to complete localised Gasoline (petrol) Engine Management systems and support our strategy to serve our customers directly here in India”.

Dr Markus Distelhoff, executive vice-president, Business Unit, Fuel Supply at Continental AG (pictured), added: “We are witnessing a huge traction for our powertrain systems and technologies in India and we have been working on the Indianisation of these solutions tailor-made for Indian OEMs over the past few years. The current investments will definitely help us in meeting the increased customer demand and also to leverage our global expertise in the powertrain domain for Indian OEMs”.

According to Claude d’Gama Rose, managing director of Continental India, “We have yet again proved our commitment to the India market. We have had series of investments and corporate announcements in 2011 including the acquisition of Modi Tyres, buying back remaining shares at a JV with Rico Auto, the entry of Benecke-Kaliko (a part of the ContiTech division) into the Indian market, and Phase III expansion of our Technical Center India. With the backing of these investments, we are quite confident of reaching the projected growth in India”.

Banking on localisation

Continental is banking on its localisation strategy and believes it is the key to its growth and success in the developing markets. With a high degree of localisation of the value-added chain, Continental says it is capable of offering high-end technology with global standards customised for the Indian market and, more importantly, at an affordable cost. Continental collaborates its technical expertise and global exposure with the know-how of its Indian engineers and specialists. Earlier in 2011, Continental had announced its strategy to double growth in India and made significant investments across its divisions and business units to spur growth.