BorgWarner expands capacity at Chennai plant

BorgWarner, an American automotive components and parts supplier, has raised the manufacturing space at its plant near Chennai by 1,500 sq metres, bringing the total production base to around 4,023 sq metres

September 20, 2018

The facility, which includes engineering, testing, manufacturing and ancillary activities, will help BorgWarner meet growing domestic demand, while catering to export market in Southeast Asia

The additional space, involving hiring of around 80 new staff, will host a new production line for variable cam timing (VCT) systems that improve vehicle’s fuel economy and engine efficiency

The company expects innovations in vehicular engines, such as those related to emission norms, fuel standards and overall engine efficiency, among others, to drive future demand in India

The auto-components industry expanded by 18.3 per cent to reach US$51.2 billion in fiscal year 2017-18; Export rose to US$13.5 billion in 2017-18 from US$10.9 billion in 2016-17

BorgWarner Inc, an American automotive components and parts supplier, has raised the manufacturing space at its plant near Chennai by 1,500 sq metres, according to media reports on September 20, citing a company statement. Following the expansion, the total production space at the plant has increased to around 4,023 sq metres which will be utilised to serve the fast-growing demand over the coming years. While the investment related with the expansion was not revealed, the company said it would hire more than 80 new staff at the facility. The investment comes amid an uptick in auto manufacturing in India to both cater to the growing domestic demand as well as the export market.

 

The additional space will host a new production line for variable cam timing (VCT) systems that help improve fuel economy and engine efficiency. The new capacity will help BorgWarner strengthen its stand in Southeast Asia. The company expects improving innovations in vehicular engines, such as those related with emission norms, fuel standards and overall engine efficiency, among others, to drive future demand. At Chennai plant, BorgWarner operates engineering, testing, manufacturing and ancillary activities. The plant can annually produce around 3 million automotive chains, among other products. The company has also seen new opportunities from the emerging electric vehicle space.

 

As the auto industry is going through a disruptive phase in terms of technological innovations, India has emerged as the preferred destination for related research, development and manufacturing activity. The Indian auto-components sector has experienced healthy growth over the last few years. The industry expanded by 18.3 per cent to reach US$51.2 billion in fiscal year 2017-18. This growth has been driven by India’s growing expertise in new-age solutions that incorporate zero emission technology, artificial intelligence (AI), machine learning, Internet of Things (IoT), among others. As a result, export from the space rose to US$13.5 billion in 2017-18 from US$10.9 billion in 2016-17.

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