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Diesel cars not going away from India anytime soon believes BorgWarner

With the kind of customer demand, BorgWarner India will scale up production of VCT to 30 lakh units from the current 3 lakh units over the next 4-5 years.

Diesel cars not going away from India anytime soon believes BorgWarner
BorgWarner Morse Systems India inaugurated its second plant in Chennai on September 21, 2022.

The passenger vehicle segment globally is gradually moving away from diesel vehicles, and in India too, a lot many OEMs have stopped or plan to discontinue their diesel offerings.

But is this the end of the road for diesel cars? Kunihiko Mishima, General Manager, BorgWarner Morse Systems Japan says, “I think it depends on the regulation, the government and the politics. Those are difficult for us to predict.”

Olivier Diss, VP – Human Resources, BorgWarner Inc adds, “I don’t think we can say that there is one size fits all solution. We can see it even today that it differs by countries by regions. Europe is currently leading the march and other countries might take a lot more time to get there.”

R Murali, Director & Plant Manager, Morse Systems, BorgWarner India says it is not the company’s decision to push for one technology over the other, “Some OEMs said that they are going to focus only on gasoline. But some OEMs have said that they are going to continue to focus on diesel too.”

BorgWarner Chennai Plant inauguration.
L-R: R.Murali, Plant Manager and Director, BorgWarner Morse Systems India; Olivier Diss, VP -HR, BorgWarner Morse Systems; KW Choi, Plant manager, BorgWarner Morse Systems Korea and Mishima Kunihiko, General Manager, BorgWarner Morse Systems Japan.

But he agrees that there will be some reduction (read due to the tightening of norms like RDE) but “don’t see it completely going away. Because some customers focus are on diesel products too.”

While the company has not revealed names of all its clients in India, Murali says they work with leading Japanese, Korean OEMs, Mahindra & Mahindra and SsangYong among others.

BorgWarner says the emissions norms plays an important role, and their products will help enable diesel engines will meet those for OEMs.

Future growth avenues

BorgWarner Morse Systems inaugurated its new 110,500-square-foot second plant in Chennai, Tamil Nadu to enable centralised manufacturing of high-performance engine control and variable camshaft timing (VCT) systems with space for warehousing and shipping.

The company says VCT technology optimises efficiency and contributes to reducing emissions in combustion-powered vehicles.

In fact, Murali believes that with the kind of customer demand, BorgWarner India will scale up production of VCT to 30 lakh units from the current 3 lakh units over the next 4-5 years.

“The good thing about the Indian market is that it is recovering. I think we could see that like the next few years as the Indian market compared to all other IC-vehicle markers that is coming down or getting flat or they are more moving towards other technology,” he adds.

“In India we expect the IC-vehicle market to grow at least for next four or five years, that will help us to expand our current product portfolio, focused on IC-engine,” shares Murali.

Compared to its global competitors, Borgwarner boasts of one of the highest localised content. Murali points out “If you look at VCT, I think I can strongly claim that like we are on at the highest a local content player compared to our competition, especially global competition.”

Talking about headwinds, he says “There is some uncertainty on the how the electrification will come. Whether it’s going to happen fast or it is going to happen slow, we are assessing that it will take some time.”

“If it comes fast we are equipped to react with our global EV products which we already have it in our portfolio,” concludes an optimistic Murali.

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