European parts maker Magneti bullish on India

Written by Ronojoy Banerjee | Ronojoy Banerjee | New Delhi | Updated: Jun 26 2010, 06:08am hrs
European auto component major Magneti Marelli will shift focus to emerging markets such as India and China. As part of its strategy, it plans to make India an integral part of its operations. The companys CEO, Dino Marelli, told FE that India would contribute over 5% to the revenues while China will bring in 7%.

India is becoming a very important market for global auto makers and we want to increase our India footprint significantly, Marelli said. He said the company would not be making any significant investments but would reach out to customers by entering into joint ventures.

In the calendar year 2009, the companys revenues from India were around euro 80 million, a jump of 100% from the previous year.

Marelli explained that with some big auto giants focussing on markets like India, it offered a big opportunity for a European company like Magneti Marelli to tap those carmakers.

Many of the big global names are looking to enter the Indian market...we have worked with many of them and it gives an opportunity to us to continue our relationship with them, he added.

On Thursday, the companys subsidiary firm announced a collaboration with Delhi-based Carnation Auto to launch Auto Premio Solutions at Gurgaon. The partnership would provide automotive solutions for mainly luxury and premium car brands in the country.

Over 50% of the companys revenues are generated from the European markets followed by Latin American countries like Brazil and Argentina and North America.

In 2009-10, the Indian auto industry recorded its best year with sales of over 12 million. However, the auto components industry has failed to keep pace. While the automobile industry grew by 26%, the components industrys growth was only 14%.