INDIAN MIRRORS FOR JAPANESE CARS
An Indian auto ancillary will be exporting for the first time an auto component, rear-view mirrors to car manufacturers including, Nissan, Honda and Suzuki through a tie-up with a Japanese company.
Japanese car makers Suzuki, Honda, Toyota and Nissan are ruling the Indian roads but are set to look into mirrors supplied by India on their way home.
Harayana (an Indian state) based FIEM Industries Limited has committed to export 30 lakh mirror plates and mirrors annually to these Japanese auto giants. This is for the first time when Indian auto ancillary company has fetched a contract for car component from Japan.
FIEM has signed a technical support agreement with Japan-based Ichikoh Industries Limited for setting up a unit for manufacturing automotive mirrors. Under the pact, Ichikoh, whose clients include Nissan, Toyota, Honda and Suzuki, will buy mirror plates and mirrors from FIEM and sell to them under its tag.
FIEM has established a design centre in Japan and are now setting up an export oriented unit at Hosur in the state of Tamil Nadu (India) for manufacturing mirrors with an investment of $28 million besides automotive lighting and signaling equipment. Currently trial production is going on at the upcoming facility and FIEM expects to commence export supply to Ichikoh early next year.
Many Japanese auto component firms are on the verge of closure and have started relying on outsourcing mechanism because of cost advantage. This is the first time an Indian company is set to supply rear view mirrors to Japanese car manufacturers.
According to industry experts, the $8.7 billion Indian auto component industry is expected to grow 15 percent annually by 2009-10 and attracting global original equipment manufacturers for its high competitiveness, cost-effective solutions, and superior engineering and design skills.
FIEM plant at Hosur would initially produce and supply mirror plates and manufacture 30 lakh rear-view mirrors annually by March 2007 for exports. Besides, the company also plans to manufacture head and tail-lamps, blinkers, plastic parts for two-wheelers and four-wheelers for exports.
The $36 million FIEM Industries also aiming to export its automotive lighting and signaling equipment to car makers in Indonesia, Malaysia, Thailand, Japan and Austria.
India is tipped as an â€˜automobile hubâ€™ of the world is becoming true rapidly as we can observe from car making to car ancillaries to now exporting car parts. A great progression overall!!