Delphi to market video products in India

By N. N. Sachitanand

BANGALORE, OCT. 4. Delphi Automotive Systems, a world leader in automotive components and systems, is all set to introduce into the Indian market its well known mobile entertainment electronics products with an emphasis on video systems such as DVD/VCD players.

Revealing this in an interview here, Mr. Choon T. Choon, President, Asia Pacific of Delphi, said the entertainment systems would cater to viewing by rear seat occupants in cars. The target market was the upscale D and E segments of the Indian car market which were now around 150,000 strong and adding about 35,000 vehicles annually. In the near future, Delphi would also be testing the Indian market for satellite-based digital radios for automobiles, as this radio service was now available over India.

As Head of the Asia Pacific operations of Delphi, Mr. Choon wanted to see more exports of Delphi products from this region to the West. He acknowledged that manufacturing of auto components was more cost-competitive in Indian and Chinese factories of Delphi than in the Latin American ones which the U.S. buyer patronised at present.

But there are two hurdles to be overcome before exports to the U.S. and Europe can be increased. One is the doubt in the Western buyer's mind about the quality of products made in this region. The other is the logistics problem in supplying from here to the West. As of now, very little from the 34 Delphi plants in 10 countries of the AsiaPac region flows to the Western markets.

Delphi's Indian subsidiary started operations in 1995 and has now four factories (in Bangalore, Gurgaon and Greater Noida) and a global technical centre (in Bangalore) involving a total investment of $100 million. According to Mr. Ravi Khanna, the new President and Managing Director of Delphi India, the Indian subsidiary notched up a sales of Rs. 328 crores last year. The growth this year will continue to be in double digits, despite a weakness in the Indian automotive market.

To add to its business volume in India, Delphi decided to enter the aftermarket in this country a year ago. The response had been good said Mr. Rajiv Arora, Head of aftermarket operations for Delphi India and the target of achieving 20 per cent of total sales in the aftermarket in the next three years was achievable. Beginning from just 10, Delphi has now over 100 part types in the Indian aftermarket covering three broad product families - suspension, steering and air conditioning. The Delphi aftermarket today spans 90 cities in the country served by the following partner-distributors: Jullundur Motor Agency (Delhi), JMA Rane Marketing, Madras Auto Service, George Oakes and Poomkundi Agencies.

Incidentally, Delphi started its aftermarket sales service in the Asia Pacific region with India in the year 2000, followed by Australia, China and the ASEAN countries. Delphi viewed India as a key market for its aftermarket products in the Asia Pacific region, said Mr. Hari Readheswar, director, Asia Pacific aftermarket operations, Delphi Automotive Systems. It is signficant that his headquarters is in Gurgaon near Delhi. Recently, Delphi India launched a countrywide consumer contact campaign that will travel to 16 cities in 12 States in order to promote the Delphi brand image in the aftermarket.

Send this article to Friends by E-Mail

Section  : Business
Previous : Motorola gets GSM network contract from BSNL
Next     : D. N. Das, new MSE President