Takata India wants to expand product range

As part of its strategy to tap the growing potential of India as an automotive hub next only to China, safety systems provider Takata India is considering widening its product portfolio in India. The company is conducting an assessment of the market for child seats, trim parts like plastic components for the centre console and sensors-electronic control units as also some other global products and it is likely that these may be introduced in India within the next one year.

At present, Takata India manufactures and supplies airbags, seatbelts and steering wheels for the premium mid-range passenger car segment in the country.

Toyoji Iwane, managing director of Takata India, the joint venture company between the Anand Group and Takata Corporation of Japan, says that it is expecting to add three new customers to its OE list in the passenger car and multi-utility vehicle segments by mid-2011, with start of production to commence soon after. As part of its strategy to grow in India, Takata is producing the same quality of safety products in the country as those that are manufactured by it globally.

"India is a very important market for us. We see big potential for growth in the Indian automotive market size as well as passenger car segment over the next 10 years so we are bringing all our technology, knowledge and products into the Indian market. As demand rises, we will also look at upgrading the small car segment with safety features," explained Iwane.

Gurgaon-based Takata India has two manufacturing facilities in India located at Chennai and Neemrana in Rajasthan that are equipped with adequate capacity to service the existing and fresh orders. However, it may consider setting up a third plant in the automotive hub of Pune over the next two years as volumes shore up. Moreover, the Anand Group is particularly strong in this region and Pune is home to many vehicle manufacturers as well.

Meanwhile, the JV in which Takata holds 75 percent of the stake with balance 25 percent held by the Anand Group, set up the Chennai facility two years ago with mass production commencing in January 2010. The Neemrana plant is located in a Japanese stronghold and kicked off production last October. Both produce airbags, steering wheels and seatbelts with investments in both the plants together running into $23 million so far, funded through the JV.

Iwane told Autocar Professional: “We are the only company in India to produce all the safety products locally. Other companies either import or part-manufacture them in India. Right now, our focus is on the domestic market but if the customer wants us to export components, we will also do that.’ TRW and Autoliv are believed to be Takata’s immediate competitors in India. Takata prides itself on its airbags that are completely indigenously manufactured including its cushions and open in milliseconds of an impact. The company has, so far, implemented major localisation in its safety products and going forward is targeting complete localisation of components when volumes justify it. Iwane maintains that while the technology in use globally is the same for producing safety products, the difference lies in customising the systems to individual requirements. Moreover, safety systems are linked to sensors that warn drivers of impending accidents.

However, he cautions that airbags should not be too soft otherwise the accident impact would be felt harder. At present, Takata provides airbags for drivers and co-passenger in India. Daimler's cars use curtain airbags that are spread across the front to the back in the inside of the car to cushion the crash impact besides the side bag near the seat. Takata could look at bringing these products

to India in the future, if OEs demanded it. This would be buttressed by the fact that the installation of airbags is expected to rise in India over the next three years and is also underlined by the company’s dream of ‘No victims due to traffic accidents. Save all people’s lives.’ Besides, Takata also produces pedestrian head protection airbags, knee airbags, seat weight sensors, satellite sensors and pop-up hood devices globally.

India is currently following the European regulations for safety and airbags are not mandatory for all vehicles in India except premium cars. But according to Iwane, the awareness of safety is slowly increasing in India. All of which is good news for Takata India.