NTN to Launch Constant Velocity Joint Production in India
NTN Promotes “Local Production” In Pursuit of No. 1 Global Market Share
In response to the rapid expansion of the automobile market in India, NTN Corporation (NTN) will establish a company in the state of Haryana, India to begin production of constant velocity joints (CVJ).
1. Purpose of the New Company
NTN regards CVJs as one of its strategic products. Under its vision of “No. 1 in global market share by 2010,” the corporation is concentrating its efforts on the development of new technology and increasing global sales through its GAM (global account manager) system.
India has the fourth largest automobile output in Asia, following Japan, South Korea and China. In 2004, domestic Indian production broke through the 1.2 million-vehicle mark and a further increase to 2.3 million vehicles per year is expected by 2010. Meanwhile, the Indian market has great potential due to the country's 1-billion-plus population. Automakers are universalizing platforms around the world and are expanding production into Europe, the United States, Asia and China. India is poised to become part of this framework.
NTN adopted the policies of “local production” and “production in the most appropriate locality worldwide,” and has established nine CVJ production bases in Japan, the United States, Europe, Asia and China. By adding India as its tenth global production base, NTN is accelerating its progress into the BRIC nations (Brazil, Russia, India and China).
CVJ production at the new company will raise NTN's market share of vehicles built in India by Japanese automakers as well as increase orders for CVJs from Indian, European, U.S. and Asian automakers.
2. Future Plans
The new company will be formally organized in November, possibly as a joint venture with a local Indian company. Mass production is set to begin in March 2007. Sales for fiscal 2007 are forecast at around 1.5 billion yen and at around 4.5 billion yen in fiscal 2010.
3. New Company Profile
| (1) |
Tentative company name: NTN Manufacturing India Private Limited |
| (2) |
Business: Production and sales of constant velocity joints |
| (3) |
Initial capital: Estimated 300 million yen |
| (4) |
Location: Growth Centre of Bawal, Haryana |
| (5) |
Establishment: November 2005 (planned) |
| (6) |
Start of operations: March 2007 (planned) |
| (7) |
Site area: Approx. 85,000 square meters (planned) |
| (8) |
Total floor area: Approx. 10,000 square meters (planned) |
| (9) |
Initial investment: Approx. Estimated 2 billion yen |
| (10) |
Sales plan: Approx. 1.5 billion yen in sales forecast for fiscal 2007, approximately 4.5 billion yen for fiscal 2010 |
| (11) |
Employees: Initially 80 employees; estimated 220 employees by fiscal 2010 |
[Planned Location of NTN's India Production]
[CVJs to be Produced at the New Company]
Constant velocity joints(CVJs) are key automotive components that transfer the rotational force of the engine to the wheels at a constant speed.
With the advance of vehicles that are lighter, higher-powered and have more complex drive systems, the vehicle's NVH (noise, vibration, harshness) is an obvious problem. Because customers demand a comfortable and quiet ride, cars outfitted with CVJs that reduce NVH are greatly increasing.
|
