Magna Steyr plans local drive

AUTO SECTOR STEPS ON THE GAS

Magna Steyr of Austria, the world's largest contract-manufacturer of cars, is eyeing India, as a possible next destination to set shop. The $5 billion company, currently operates out of 20 locations globally and employs over 11,000 people, producing nearly 1,000 cars a day.

Market sources said that the company is in talks with Nissan of Japan, Citroen of France and Proton of Malaysia for contract-manufacturing their products in India.

At present, the company has a small presence in Pune, offering engineering services under the name Magna Steyr India Pvt Ltd. Eventhough Krishnan Nair, managing director, Indian operations, refused to give details, he said, that various groups from the parent company in Austria are undertaking studies to make India the base for contract-manufacturing cars and also out-source components.

He however refused to either confirm or decline the parent company's talks with Nissan, Citroen or Proton. The Austrian parent, currently assembles Mercedes-Benz E-Class, Mercedes-Benz G-Class, Jeep Grand Cherokee, Chrysler Voyager, Chrysler 300C and Saab 9-3 Convertible.

Sources in the auto-component industry too, confirmed that a team from the company's headquarters in Austria had visited India two months back and had extensive discussions with tier-I suppliers for out-sourcing components from the country.

Interestingly, all three automobile manufacturers with whom, Magna Steyr is said to be in talks with, had evinced interest in the past to enter the country by setting-up a full-fledged manufacturing facility. While Citroen and Proton are said to have abandoned their plans, Nissan is still keen to set base in India.

Nissan currently sells its SUV, X-Trail as fully-built units imported into the country. Nissan executives in charge of the company's operations in India had on earlier occasions confirmed the company's plans to start manufacturing cars in India, but are yet to announce any concrete plans in terms of time-frame, volumes or investments.

Describing Magna Steyrs' operation as a very small one, doing business worth a few crore rupees, Nair said, that the parent company's' plans could be announced in January, during the Autoexpo in the capital.

Magna Steyr is controlled by a holding-company, Magna International, which is based out of Ontario in Canada, which has reported a turnover of around $20 billion, employing nearly 82,000 people at 223 manufacturing divisions, in 22 locations globally.