According to news sources, the Canadian auto component manufacturing giant Magna International is slated to start production of its two units based in Sanand, Gujarat. The company is looking at starting from the second week of December, 2015.
Magna International is a New York Stock Exchange (NYSE) listed entity and has successfully established two distinct units for manufacturing seat systems specifically for Ford India in addition to chassis and body for additional original equipment manufacturers (OEMs).
Swiss engineering giant Oerlikon was the first to setup its unit in Sanand and Magna is another international auto component maker to follow suit. The units spread over an area of 5.67 lakh sq ft and will be providing employment to 600 people in all. The company has not revealed any investment details till date. The company’s clients include leading names like Mahindra & Mahindra, General Motors, Ford India and Tata Motors among others. Magna has a total of nine units spread across the country.
The demand for passenger vehicles has gone up rapidly in recent times and there has been an influx of automobile ancillary units in Sanand to cater to the upcoming and existing automobile plants in the Becharaj-Mandal belt and Sanand. Ford and Tata already have operational plants while Honda Cars and Maruti Suzuki are in the developmental process.
Earlier in 2015, JBM Auto based in Delhi, sanctioned an INR 200 crore unit for manufacturing components for Ford India. A whopping 19 vendors of Ford India have already shifted within 3 kilometres of the plant and several of them are already developing their units. Some of these vendors include Caparo Engineering, Getrag Transmission India, Visteon Automotive, Motherson Systems and Valeo India to name a few.
According to governmental sources, the entire automobile hub of Mandal-Becharaj SIR and Sanand should be getting investments between INR 15, 000 to 20, 000 crore within a period of 3-4 years from component manufacturers and OEMs. According to leading industry players, the Gujarat government has already planned to scale up automotive industry shares to 10% in its cumulative engineering output by 2020. The current figures stand at 3.7%.