Japanese auto parts and diversified manufacturing company Toyoda Gosei is to set up a safety systems subsidiary at Neemrana (Rajasthan state) to produce products such as steering wheels and airbags for Indian car makers.

The Hindu Business Line said the supplier plans to start production in April 2009 on a 80,000 sq m site allocated by the Rajasthan State Industrial Development and Investment Corporation.

"Our decision to invest in Rajasthan is a strategic one to tap all the automobile manufacturers in north India. Neemrana in Rajasthan offers proximity to the entire northern region of India with access to road network, electricity and manpower," said T Matsuura, president, Toyoda Gosei Japan said in a statement.

Hindu Business Line noted that RIICO has already provided land to Honda Siel Cars India to set up its second manufacturing plant in May last year.

The presence of automakers such as Ashok Leyland, Eicher, Hero Honda, Honda Siel Cars and others in the region has led to about 70 component units, including Caparo Fasteners, Climate System, Federal Mogul-Goetze, Hi-Tech Gear, Amtek India , Balkrishan Tyres, and Continental Engines, establishing their presence, said RIICO managing director Kuldeep Ranka.