Schaeffler to introduce AMT & other similar solutions in India
Schaeffler AG, the 12 billion euro German auto parts manufacturer, is considering making India a global hub to make two-wheeler and tractor components. It plans to invest Rs 900 crore over the next five years in India on localisation and research & development. Dharmesh Arora, president and CEO automotive at Schaeffler India, said in an interview with ETAuto said that the company is in talks with carmakers to introduce automated manual transmission systems in the country.Nabeel A Khan | 21 April 2015, 1:09 PM IST
Q1: What was the reason behind integrating your subsidiaries in India and bringing them under the Schaeffler India name?
The thought of bringing the Schaeffler umbrella on the top is to represent certain value and certain expectations that the customers will have from the three brands together. The synergy that we bring through providing the complete product portfolio to our customers is of great value to our customers. I am working closely with our team for reorganising them under industrial and automotive business divisions so that we really go to the customers as one face and offer complete solutions. That journey we started two years ago and we continue to work on that.
Last year, we grew 17% in India, with our turnover in excess of Rs 3,000 crore. We are launching new product segments this year. For example, in automotive, we have done automotive alternator and pulleys last year. We are doing chain-drive system, front engine accessory drive system.
Q2: With the 'Make in India' programme, the government is offering easy access to manufacturing in India. How are you gearing up to leverage the opportunity?
We are excited about the thought that the government has plans of increasing the manufacturing share of the total GDP in India. We have been investing quite well.
This year, we have plans of investing Rs 180 crore in both our manufacturing footprint and engineering capabilities in India. That is a level of investment we will continue for at least the next 5-10 years. In our foreseeable future, we want to increase localisation and engineering competency in the country.
In terms of main focus, at the start we have identified two core sectors --agricultural tractors and motorcycles. These sectors in India will provide whole solutions to Schaeffler globally.
India will be one of the partners of the global technology network of Schaeffler, which means these two sectors will be primarily located in India not just to serve India but also for global needs. For some technologies -- for example, e-mobility, India is in its infancy -- we will be getting them from Germany. Some technologies will be developed in India, while for some we will be dependent on other technology centres.
Q3: We hardly see any company getting into manufacturing parts for electric vehicles. How do you see this side of the business in India?
We are a technology solution provider. We have solutions on e-mobility under themes. For example, we are working on integrating electric motors into individual wheels. Each of the four wheels can independently run by an electric motor. We have development projects with OEMs. As far as India is concerned, we have made small beginnings with Mahindra Reva, the only electric car being produced in the country.
We are part of the government's mission in e-mobility. We are participating in development of the technology in India.
Q4: In the past few years, automobile products have been evolving quite fast in terms of features and electronic content. How does the future look in India?
We have strong associations with technology partners like Continental, where we have 46% strategic share. We are particularly strong in providing electronic solutions in powertrains. We are working closely with them on co-developing such solutions and providing it to our customers.
Q5: In India, we have seen success for automated manual transmission in passenger vehicles and currently, there is only one supplier. Schaeffler has similar technology. Will that be introduced in India?
We have provided various possible solutions to our customers in this space. We have an ECM (electronic clutch module or management) wherein the clutch pedal is removed, and then the gears can be changed without application of the clutch -- that is also a clutch-pedal-less like AMT. We also have an AMT solution. AMT is getting well accepted and almost every OEM is working on it. We will be very happy and glad to work and further that solution. Apart from that, we have other automation solutions on offer.
Q6: What are the solutions that we can expect in the next few months?
ECM is already demonstrated...We have demonstrated AMT to our customers. Our competitor has a lead on it, but in terms of how the market is growing and developing, we will certainly be happy to participate. As soon as we have production intent from our customers, we will be happy to launch it.
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