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OEM Update
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‘Capacity crunch in supply of automotive components’

June 21, 2011 11:58 am

“With the current growth rate, India is one of the fastest growing automotive markets in the world…. However, we also see that the industry is witnessing capacity crunch in the supply of automotive components”, reveals Ramchandra Rao, executive director – India (automotive division) at Eaton
 
Automotive components manufacturing and Eaton in India
As per industry sources, the Indian automobile industry is reported to grow at 26 per cent in vehicle sales during 2010-11. This growth is mainly on account of robust economic growth, new model launches, ease of financing, and enthusiastic consumers. With the current growth rate, India is one of the fastest growing automotive markets in the world. With the stringent environment norms, there is a great stress on efficiency and sustainability and this will help bring in new technologies and solutions to the Indian market. These trends will provide a great opportunity for companies like Eaton, who have the right technologies to cater to the growing demands of the OEMs and offer efficient and effective solutions.  
 
However, we also see that the industry is witnessing capacity crunch in the supply of automotive components. To keep up the healthy growth rate, the components manufacturers need to cater to the OEM demands and will need to increase investments in capacities as well as capabilities.
 
Target OEMs
Eaton has a wide range of products for performance, safety and fuel efficiency for the automotive segment. We are at various stages of talks with passenger vehicle OEMs, off highway and truck manufacturers for many of our products. Currently, we supply engine valves for many passenger cars on Indian roads as well as the MLocker differential for M&M’s Scorpio which is being exported to South Africa.
 
Growth status
Eaton has been consistently growing its market share in the Indian automotive market and emerging as a preferred supplier of the OEMs owing to strong technology and innovation strength.
 
Prime growth drivers

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