TOKYO -- Denso Corp., the Toyota-affiliated parts supplier, plans to invest $35.5 million to build its first technical center in India to tailor products to the country’s booming market.
The center, to be built in the northern city of Gurgaon, is scheduled to open by the end of 2011, Denso said in a statement today. Work will focus primarily on powertrains, electric and electronic systems, information and safety systems and small motors.
“Transferring product development operations to the Indian market, from Denso’s headquarters in Japan, will allow sales and technological functions to collaborate more closely and enable them to quickly respond to both the market and customer needs,” said Hikaru Sugi, head of r&d.
India’s expanding auto market has spurred the world’s largest automakers to build new assembly plants there to bolster local capacity. Indian car sales climbed by one-third in August to a record high, making the country one of the fastest growing markets in the world.
Japanese automakers, including Nissan, Toyota, Honda and Suzuki, have recently opened factories in India or announced plans to do so soon.
Denso started operations in India in 1984 and produces locally such components as air conditioning systems, fuel injectors, starters and alternators.
The new technical center is expected to employ 70 people by 2015.
Denso, which is roughly 22.5 percent owned by Toyota Motor Corp., ranks No. 1 on the Automotive News list of the top 100 global original-equipment parts suppliers with estimated worldwide sales to automakers of $28.73 billion during its most recent fiscal year.