Toyoda Gosei is building a new auto parts plant in India to meet growing automobile production in India and the expected increase in demand for airbags as stricter safety regulations are adopted.

The new plant is located in the western state Gujarat. It will be a branch plant of Toyoda Gosei Minda India (TGMIN), a subsidiary of Toyoda Gosei. The new plant will begin supplying airbags, weatherstrips and other automotive parts to Suzuki Motor Gujarat (SMG) in the second half of fiscal 2018. The cost of the factory is pegged at INR732m (US$11.33m).

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Toyoda Gosei said it views India as an important market and has been expanding production capacity in the country. After the new plant comes on line, it will have a network of five factories in India.

Total sales there were approximately JPY14bn (US$125.6m) in FY2016, and the company aims to expand this to approximately JPY20bn by 2021.

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