Delphi's interior foray comes in the wake of plans by leading automobile companies to enter the domestic market with small luxury cars. The cost of manufacture of interior components of these cars is likely to be in the vicinity of 10 per cent to 15 per cent of the total cost. Currently the company is in talks with companies such as Telco, Daewoo, and Hyundai. For Telco's Mint cars it will be supplying auto components on an OEM basis.

The new division is likely to be a part of the company's Jigani facility near Bangalore. It has pumped in around $16 million for the plant. In addition to this unit, it has factories in Gurgaon, Noida, and Greater Noida.

At present, the company operates in India through its five divisions--Saginaw Steering Systems, Packard Electric Systems, Energy and Engine Management Systems, Chasis Systems and Harrison Thermal Systems.

It will also be adding its seventh division--Delphi Delco Electronics Systems--which provides components related to audio and electronics products to the car-makers on OEM basis.

The company is also examining the possibilities to have a research and development centre for auto components in India, where it can source experienced hands easily, according to Ravinder Khanna, director, Saginaw Steering Systems division.

Altering its conventional way of marketing that is supply under OEM basis, Delphi also has decided to go retail by unveiling a branded auto component in the domestic market. ``We will have more outlets for `AC Delco' brand components along with exclusive demonstration centres in each metros,'' he added.

The company has set aside about $20 million for upgrading its existing units in the next two years. The funds, which will be raised internally, will also beutilised for brand promotion. Recently, it has received Foreign Investment Promotion Board (FIPB) approval for increasing the ceiling on equity injection from Rs 285 crore to Rs 450 crore.

Though the company's main focus is on the growing domestic car market, it will also focus on small exports to the European countries. It will primarily be exporting harness components to these markets.