Continental has launched a new technical centre in Bangalore and expects to invest about INR1.5bn ($US29m) every year for its operations.

Centre head Gunnar Juergens told the Hindu Business Line he expected the centre to grow 20% every year. There are currently 750 engineers working in the centre including 600 on offshore development projects.

He said the centre would continue to work with its partners, SISL (Siemens Information Systems), KPIT Cummins Infosystems and Wipro. After Germany and Romania, India is the third largest engineering hub for Continental worldwide.

Continental Automotive Components India MD Markus Distelhoff said even though the growth of the Indian operations has reduced by 20% to 50%, there have been no layoffs.

“The positive thing is that we continue to grow, even if it is at a slightly lower level,” he said.

Some of the new products being launched in the country this year should fuel growth further. Continental supplies fuel system parts for Tata Motors’ new Nano small car.

The technical centre develops and tests engine management systems to reduce fuel consumption and emissions.

Its other activities include software development and verification for electronic brake systems, software enhancement for emergency call systems and software development to connect mobile phones with the car audio system and to stream media from the phone to the car.