Takata India to make safety kit for cars and CVs

Delhi-based Takata India, the 75:25 joint venture between $ 3.8 billion Takata Corporation of Japan and the Rs 2,700 crore Anand Automotive Systems Group, will soon commence commercial production of automotive safety system products. The company has set up two manufacturing plants – in Chennai and in Neemrana in Rajasthan – to make driver airbag modules, passenger airbag modules, steering wheels and seatbelt systems.

Toyoji Iwane, managing director, Takata India, says the Chennai plant will commence production this month while the Neemrana unit will start by May. Currently it assembles CKD kits in Noida to cater to its customers in the northern region.

Worldwide Takata has 48 plants in 16 countries with joint ventures only in Thailand and India. While most MNCs leverage FTAs and export to India, Takata chose to establish a JV. This is despite Takata Corporation having factories in Thailand, which can facilitate exports to India under FTA.

Iwane says being closer to customers, “allows us to establish better communication and coordinate with them,” right from development till series production. This makes more sense since it makes safety critical components and hence two plants in India to cater to respective regions. Initially it will cater to cars and commercial vehicles and later look at introducing child restraint systems. "

The two plants in India will follow Takata Manufacturing Standards that it developed out of expertise garnered from its plants in low-cost and highly competitive markets.

Detailing the process, Iwane says the company banks on three key parameters – standardisation, customer specification and customisation. While standardising operations optimises costs, it works in conjunction with OEMs to customise products to their specifications. It’s a strategy which has worked successfully for its operations worldwide, affirms Iwane.

Takata brings its manufacturing and engineering skills to the JV while the Anand Group supports with vendor development, human resources, administration and business development. The products made in India will have some imported content. Iwane says 100 percent localisation may not be possible due to the safety criticality of the components and volumes. Though there is no plan to export products made by the Indian JV, indications are that there could be component sourcing opportunity in the future.