Toyota Boshoku teams up with Germany's Aunde via sale of Indian arm
NEW DELHI, NNA - Toyota Boshoku Corp. will form a joint venture in India with German auto parts maker Aunde Achter & Ebels GmbH by selling an equity stake in its Indian arm to beef up auto seat cover production in the growing South Asian market.
A 49 percent stake in TB Kawashima Automotive Textile (India) Pvt. Ltd., an auto seat cover maker, will be sold for an undisclosed amount pending approval by local authorities, according to a Toyota Boshoku statement released on Friday.
Toyota Boshoku's subsidiary, TB Kawashima Co., will retain the remaining 51 percent.
Aunde will transfer at least some of its seat cover production to the joint venture in the southern state of Karnataka to improve the operating ratio of the existing plant, a Toyota Boshoku spokesman told NNA on Monday, declining to disclose the output capacity.
The Indian arm's sales have been slumping, sagging to 183 million rupees ($2.5 million) in fiscal 2018 through March 2019 from 235 million rupees in fiscal 2016, according to the statement.
The Japanese-German duo aims at expanding sales in India as Toyota Boshoku has been supplying seat covers to Japanese automakers, including its parent company Toyota Motor Corp., while Aunde has been selling such products to European and American companies. (NNA/Kyodo)