Delphi to expand India product lines

Automotive parts supplier Delphi is planning to widen its product portfolio in India with vehicle electronics like oxygen sensors, ignition coils, fuel pumps and modules. These will be sold in the aftermarket. This part of the company’s efforts to enhance its aftermarkets business in emerging markets like India and Russia.

Delphi is one of the top five automotive aftermarket suppliers in the world. In India, it entered the aftermarket in 2000. Its current product range includes brakes, suspensions, drive shafts, HVAC systems, wiring harnesses and consumer electronics like car entertainment audio and DVD players.

STRICTER EMISSIONS

The vice president, global independent aftermarket business unit, Delphi Product & Service Solution, David C Barbeau conceded that demand for products like the oxygen sensors meant did not exist today but would grow as stricter emission norms were introduced. “The market will double or triple in the next few years. Vehicles with greater compliance of emission, safety and economy norms will drive the market for engine management and emission control systems,” he said.

Barbeau said that it was just a matter of time before sophisticated engine electronics systems - of the sort found in more developed markets – made their way into the cars in India. “China is already there. We already sell engine control modules and electronically driven fuel pumps there. It will eventually be required here as well,” he said.

In North America, Delphi has initiated an aftermarket pilot programme for air bag replacement and oxygen sensors. These products will eventually find their way into the after-market in other regions, Barbeau said. This trickle-down process is best shown by the company’s aftermarket business portfolio in different regions. In North America it mainly deals in vehicle electronics and HVACs. In Europe its business is mainly chassis parts, with HVACs and electronic parts just about starting to take off. In India, it is confined to chassis parts.

BIGGER CAR PARC

This is a function of car parc. In North America we are looking to develop more technical parts because we have a bigger car parc that is ready to accept these products. Newer vehicles with greater emission controls and electronics will seed our aftermarket foray here,” he said. Delphi’s current priority in India is air conditioning components where the immediate goal is to triple sales.

Rajiv Arora, of Delphi’s aftermarket business unit, is optimistic about growth prospects here. This optimism stems from studies which estimate that India will be among the top seven countries in terms of car population with the next ten years. “This means that we have the potential to go better than Germany and France. Our car parc is going to double in the next five years and triple in 10. In the next five years both Indian and China will be our growth drivers,” he said.

P THARYAN