Remains committed to India and emerging markets
Not long ago India was not even appearing among the top 10 automotive producers in the world. It is the speed that India climbed up the ranks today is of particular importance for many automotive suppliers. With increase in its GDP India is poised to become the third largest market by 2030. It is in order to tap the growing requirements of the country that MAHLE India, a leading international development partner and supplier to the automotive industry as well as a pioneer and technology driver for the mobility of the future, announced the establishment of the MAHLE Engineering, MAHLE IT and Sales shared Services Centre at Pune.
Built over 55,000 sq. ft., the Centre at Pune currently employs more than 450 engineers and technicians. Recognizing the design and frugal engineering capabilities of Indian engineers, the company expects to double its strength over the next three to five years. With this, the MAHLE Engineering Centre becomes an integral part of the global MAHLE R&D Network and thus opens up its services to all divisions of MAHLE, be it for conventional or electrified power train. The MAHLE Global Engineering Centre supports systems such as SAP-PLM and CAD applications such as Catia, UG, etc.
The new Centre at Pune also becomes only the third global IT and shared centre of MAHLE, the others being in Mexico and Poland. Mr. Raj Kalra, President, MAHLE Holding (India) Private Ltd., said: “As an engineering centre this is a unique one. Worldwide even though we have R&D centres for specific business units, this one will service the entire world from here itself. Thus proving the “One MAHLE” global approach, the company already has a strong presence in India (represented by all 4 BUs / Divisions through 14 plants generating 278 million EUR with a head count of 4,400 employees), but we need to take it to the next level. Therefore at the core of the organization sits the shared services supporting multiple locations globally. MAHLE in India has greater ambitions not just of a manufacturer but of a shared services provider as well. With the MAHLE R&D world, we are looking forward to undertake projects across all BUs and excited to lead in new areas such as mechatronics, embedded software and firmware development.”
The plant will be geared to offer customised and world-class product solutions to customers in India. The company will deliver environment-friendly solutions meeting the upcoming emission regulation norms and address pollution which is a concern in India.
On the sidelines of the event we grabbed the opportunity to speak to Mr. Arnd Franz, Member of the Management Board, Corporate Executive Vice President, OE – Automotive Sales and Application Engineering.
He gave a detailed account of the company’s policy initiatives and its growth strategy.
Excerpts:
What does MAHLE aim to achieve through the new Engineering Centre?
Our customers from both domestic and global markets are aware that we are enhancing our capabilities in India. Of course, there was the question of cost efficiency and how can we provide mobility to people at an affordable cost. We design something that fits in the emerging market demand, not only in India but also in Brazil, South-East Asian countries or even for the African markets. So, there is an opportunity for us to take a lead by taking support from global programs and achieve as a wholly-owned entity here in India with this centre.
What are some of the applications where you will have immediate focus on from the new Centre?
Developments in engineering and services from the Pune Centre will look into all applications like thermal management, powertrain and cooling system. Today our main emphasis is on thermal management. But we will add filtration, engine peripherals, engine components and also define the first project for electrification from here soon.
Will the new Centre reduce dependency on other Engineering Centres of MAHLE in Mexico and Poland plants?
The focus of our Poland and Mexico Centres will be more on the administrative side such as accounting, AP, AR solutions for the American and European markets. In India we will be focusing more on the product lifecycle management (PLM) side. The Pune Centre is equipped with global systems and is the one that will support sales services globally.
How will India play a lead role for MAHLE in combustion engine-related requirement for emerging markets?
As part of the global green initiative there is a growing trend towards development of hybridization and electrification, although IC engines are here to stay, especially in a market like India. Given this market scenario, MAHLE has developed a dual strategy by which it will continue to remain and provide optimal solutions for IC engines while simultaneously developing solutions for electric mobility. MAHLE has explained its mission to offer innovative mobility solutions that stand for clean air, fuel efficiency and driving pleasure.
The Indian market will surely have a bigger role in the development of combustion engines. Volume will be the big driver. As per our projection, by 2024 combustion engines in India will increase by the largest number compared to all other markets globally. We forecast addition of two million combustion engines per year in India, which is higher than any other markets in the world, including China. Interestingly, this covers only passenger vehicles.
India is a growing market for combustion engines, whereas the other markets are flat. That was the motivation to put more combustion engines-related engineering and tech centre, which makes more fuel efficient and eco-friendly and affordable combustion engines for people.
What is the roadmap for MAHLE hereon, especially as we enter the BS-VI regime next year?
For BS-VI, the challenge will be on the logistics side, planning and management of volume, sales channels and dealership. MAHLE is ready from the technical, project management and product maturity perspective for BS-VI. We are ready for BS-VI with light weight piston rings, low frication rings, plastic cylinder head cover, air intake system, bearings, fuel filters, EGR, coolers and chargers. I think if MAHLE continues growing at the current rate, we can quadruple our sales by 2030.