DaimlerChrysler to step up India R&D outsourcing

German carmaker DaimlerChrysler will increase outsourcing of Research and Development (R&D) to India.

DaimlerChrysler Research Centre (DMRC) in Bangalore undertakes research in he areas of encryption, image signal processing, telematics, fuel cell modelling, CAD, CAM, CAE and PDM, for the company's global requirements. The Indian centre would assist the group in designing and technology upgrade.

"DaimlerChrysler is planning to significantly augment R&D works at DMRC in these areas. Similarly, the group's outsourcing of components like motors and crankshafts from India is also going to grow," Wilfried Aulbur, MD and CEO, DaimlerChrysler India, said.

Aulbur said the company is planning to step up exports to countries like Bangladesh and Sri Lanka. Last year, DaimlerChrysler India exported 95 cars assembled in India to Bangladesh and Sri Lanka.

In the domestic market, the localisation in cars like the C, E and S-classes is expected to be stepped up.

At present, the localisation is 50 per cent in C-class cars and lesser in other models. Aulbur said the Indian market holds more potential for the company's range of cars vis-a-vis the Chinese.

"Indian market is very raw and getting ready for our range of cars. We are highly enthusiastic about the local market," he said.

Aulbur ruled out the possibility of DaimlerChrysler India getting into the mass market.