Bosch Chassis may set up ABS facility in India

Robert Bosch Chassis Systems India, a subsidiary of Robert Bosch GmbH and manufacturer of automotive brake systems and components, may set up a facility to produce and supply anti-lock braking system (ABS) technology for vehicles in India. Robert Bosch Chassis Systems (RBCS) is India's leading braking equipment provider to four and two-wheeler manufacturers.

Ferdinand Allerkamp, Joint Managing Director, Motor Industries Company (MICO), said, "We are looking to venture into producing ABS systems in India through Bosch Chassis Systems to tap the market of mass production of that technology".

The company has not finalised its investment plans for the proposed venture but a decision on it will be taken soon, asserted Allerkamp.

Although the ABS system is viewed as a life saving equipment on-board a car, vehicles which are equipped with the technology in India have failed to clock enough sales. Every small car which is loaded with an ABS system is costlier by Rs 30,000-40,000 than a regular car minus the system.

Industry analysts have pointed out that most volume-based players among the domestic car manufacturers do not offer the ABS system as a standard feature as it pushes up the end cost of the car. They however offer it as an option.

However, Allerkamp said, "We are hoping that the (car) industry will mature in time with some assistance from the government, like improving the road conditions and bringing a law into affect which will make ABS systems mandatory among vehicles, similar to the case in Europe".

RBCS has plants in Pune, Jalgaon, Chakan, Manesar and Sitarganj (Uttarakhand). The company's total revenue for the year ended 2006 was Rs 477.8 crore.

The Bosch group, which holds 80 per cent of RBCS, is a global manufacturer of automotive and industrial technology, consumer goods and building technology.