With increasing awareness and acceptance of safety technologies in vehicles, India is emerging as a focus market for airbags, ABS and ESC, Continental said in a statement.
"The chassis and safety division of Continental will start within 2016 the production of ABS and ESC units in India," it added.
A new assembly line for ABS and ESC for passenger cars and later ABS for two-wheelers will be located in the existing Continental Automotive Brake Systems plant in Gurgaon, Haryana, the company said.
The company is targeting the delivery of its first localised ABS/ESC products for India to a leading vehicle manufacturer, by end of 2016, Continental said.
"The Indian market is one of the world's largest markets for compact cars and two-wheelers. By producing these systems in the market for the market, we are matching our portfolio to the requirements of our local customers, while keeping our technologies affordable", said Felix Bietenbeck, Head of Continental's business unit Vehicle Dynamics.