Mitsubishi Electric to open second plant in India, make emission-reducing auto parts

09, Oct. 2019

NEW DELHI, NNA – Japanese electronics giant Mitsubishi Electric Corp. will build a plant in India to meet growing demand for automotive equipment that can reduce vehicle emissions amid tightening regulations in the country.

Mitsubishi Electric India Pvt. Ltd., the Japanese firm’s wholly owned manufacturing and sales unit, plans to invest about 1.7 billion yen ($15.8 million) in a second plant in the western state of Gujarat. It would start running in October 2021, the Tokyo-based firm said in a statement Monday.

The 20,000-square-meter plant that’s now under construction will produce motor control units for electric power steering, exhaust recirculation valves and giant magnet resistance sensors, according to a company statement. The company’s first plant operates in the northern Indian state of Haryana.

Masato Tsukahara, a company spokesman in Tokyo, told NNA Tuesday the parts will contribute to improving fuel efficiency in vehicles and cutting emissions. He declined to comment on the production capacity of the new factory but said the local arm will gradually boost the capacity depending on demand.

Mitsubishi Electric’s local unit aims to supply the finished parts to Japanese and other carmakers in India, the world’s fourth largest automobile market. Automakers such as Suzuki and Tata produce vehicles in Gujarat.

The Indian vehicle market is facing an unprecedented downturn as tightened auto loans and insurance premium hikes have continued to dampen consumer sentiment. Sales of cars and motorcycles fell the farthest in August since statistics became available in 1997, according to data from the Society of Indian Automobile Manufacturers, an industry body.

But Mitsubishi Electric “foresees growth in demand for automotive equipment compliant with a new vehicle emission standard (effective from April 2020), the spokesman said. The government intends to make a transition from existing Bharat Stage 4 vehicle emission standards to Bharat Stage 6 next April, equivalent to Euro 6 emission standard.

The company intends to invest further in India in the long term, he added.