Pioneer scouting for partners to manufacture in India
Initially, the Indian unit of Tokyo-based Pioneer Corporation is likely to outsource manufacturing of its products through contract agreements in India, and later look at the option for a joint venture for in-house manufacturing.
Pioneer India is in advanced negotiations with multiple automotive electronics makers to manufacture in-car entertainment products and safety products such as dash cameras in India, according to senior company officials.
“In the future, we will be localising all our products here. A lot of active discussions are happening with potential partners for local manufacturing,” Pioneer India Managing Director Aniket Kulkarni told Autocar Professional on Tuesday.
The India unit of the Japanese Pioneer Corporation offers car entertainment products such as stereos, speakers, woofers and amplifiers, and accessories like noise-dampening sheets. The company has also introduced smart dash cameras for the Indian market.
Pioneer India's products are available both in the aftermarket and as OEM-approved parts through authorized dealers. The company is also actively discussing with car manufacturers to supply products directly to them, enabling vehicles to be factory-equipped with Pioneer products.
Though the company designs some of its products at its R&D centers in Gurugram and Bengaluru, it does not manufacture any of the products in India. The products are currently being imported from countries like Thailand and Vietnam, where it has a manufacturing base.
Pioneer India expects to start local production of its products here as early as next year. Initially, the company is likely to outsource manufacturing through contract agreements, and later look at the option for a joint venture for in-house manufacturing.
Pioneer India has plans to use manufacturing in India for exports to its other markets globally as well. Japan and the US are the biggest markets for Pioneer Corp.
“We will start with the India program. But to ensure that overall manufacturing is sustainable, we will need volumes. So while we are scaling up India volumes, global programs will also be there,” Chief Innovation Officer Siva Subramanian said.
Setting up manufacturing in India would require big investments, but the company’s management did not disclose the quantum of investment it would be doing here.
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