Delphi’s Indian subsidiary will continue its planned investment and nearly quintuple its revenues by 2010, despite the parent company’s bankruptcy protection filing, a senior company official told Reuters.

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“The company will assess which is the right place to make the various products for its customers,” Prashant Shah, vice president of sales and marketing for India, said.


Reuters said Delphi India, which began operations in the country in 1995, has four manufacturing plants, a technical centre and a joint venture manufacturing facility with TVS Motor Co., in which it owns 52%.


The report added that the Indian unit has invested more than $90 million and employs 1,700 people – it had revenues of $110 million in the fiscal year ended March 2005 while exports totalled $30 million. The firm is targeting $500 million in revenues by 2010.


“There is potential in two-wheelers, which is growing quickly in India, and there is also opportunity in commercial vehicles, with changing regulations and new emission and safety norms,” Shah told Reuters.

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The news agency noted that India is the world’s second-biggest motorcycle market after China and added that Delphi’s customers in India include Tata Motors , Toyota Kirloskar Motor, Honda Motorcycle and Scooter, Kinetic Motor , TVS Motor and Bajaj Auto, as well as General Motors.


The report said the technical centre in Bangalore is Delphi’s biggest outside the United States and employs 400 engineers but Delphi will double the headcount by 2008 and invest $US10 million by mid-2007.


India’s large and highly fragmented auto parts sector will continue to face pricing pressure from manufacturers, so an option is to use technology to cut costs, Shah reportedly said.