Japanese AV equipment maker Onkyo makes India global production base
TOKYO, NNA – Japanese audio visual equipment maker Onkyo Corp. is gearing up its car audio product output in India to meet growing demand in the world’s fourth-largest automobile market.
The company said Thursday it plans to triple automotive speaker production to 500,000-600,000 units per month in the South Asian country by the yearend, compared to 200,000 units the previous fiscal year that ended in March this year, as it is receiving more orders than expected from Japanese carmakers.
Minda Onkyo India Pvt. Ltd., its equally owned joint venture with Minda Industries Ltd. under auto parts maker Uno Minda Group, plans to begin self-manufacturing of key parts for the sound quality of the speakers to enhance product quality and cut costs, the Japanese company said in a statement Thursday.
The local unit, established in 2017, ships car speakers overseas to markets such as Japan and Thailand. It intends to build second and third factories in the country in or after 2020, the statement said.
The struggling audio maker is stepping up moves to shift its focus to automotive speakers and other original equipment manufacturing products from home audio equipment due to the shrinking home audio equipment market at home.
The Osaka-based firm has positioned India as a “major global production base” with a view to expanding production for local and overseas demand, while focusing on car speaker production for domestic sales in China, the statement said.
The company is “relocating output capacity for overseas shipment in China to India,” an Onkyo spokeswoman in Osaka told NNA Friday, adding that it aims to avoid higher tariffs on China-made items amid the lingering trade row with the United States.
Onkyo agreed in May with Sound United LLC of the United States to discuss the divestment of home audio visual and electronics equipment to the U.S. firm, which has audio equipment brands such as Denon, Marantz and Polk Audio, or Viper Holdings Corp., Sound United’s holding company. The deal is valued at $75 million and is expected to close by the end of November, she said.
Following Onkyo’s decision to sell its mainstay business to Sound United, which accounted for nearly 70 percent of the 43.8 billion yen ($413 million) group sales in the year to March, it has been restructuring its global production, according to the company.
In China, Onkyo has integrated automotive speaker production at two other local units into Guangzhou Guoguang Onkyo Acoustic Corp. in the southern province of Guangdong, which the Japanese firm made it group’s wholly owned affiliate in 2018.