Bullish about Indian market, the local subsidiary of US-headquartered auto component company Borgwarner is actively developing products and technologies which are capable of meeting the demands and requirements of 2021 and beyond.
In an interaction with ETAuto, Sudhir Kumar Chawla, Managing Director at BorgWarner Emissions Systems India underlined that besides readying for BS-VI emission norms, the company is all set to introduce products for gasoline engines where it sees great opportunities lying ahead.
Replying on the prospects of electric mobility space, Chawla said India is still at a very nascent stage for Borgwarner’s electric vehicle business, although the company is closely monitoring the market trends. Edited excerpts:
Q. With so many reforms coming in, where Borgwarner is focussion the most?
In my vertical of BorgWarner, that is emission and thermal systems, we are focusing to meet customer needs for exhaust gas recirculation (EGR) system for both diesel and gasoline through EGR cooler and EGR valves at our plant at Manesar. Now, as the Indian market is gravitating towards gasoline we are planning to bring in gasoline EGR valve as well. This will help us to serve our customers for meeting upcoming emission norms BS-VI, CAFE norms and RDE both on On-road and Trem IV on Off road vehicles.
Our another plant at Talegaon will continue to serve the cold start technology product like Glow plug and control modules. At Chennai, in-line with market requirements, we have already put in state-of-the-art production lines for viscous and visctronic fan and fan drives which is being used for local and export market.
Currently the volume is not there for hybrids and EVs in India. But we are closely following the trends and will be there as the market progress.Sudhir Kumar Chawla, MD, BorgWarner Emissions Systems India
Q. When are you planning to introduce gasoline EGR in India? Besides, what products in your portfolio gives you the greatest hope for Indian market?
Diesel to gasoline is one area where we see good progress is happening. We are already having awarded business for these technologies and we will be ready to produce gasoline EGR in 2020 itself. On the thermal side, viscous and visctronic fan and fan drives are giving customer required benefits for upcoming norms and feel it will drive our growth too.
Talking about the future mobility, hybrid will hit the Indian market first and electric mobility will come after that. We are ready with the products for both of the technologies and currently checking market readiness for them. We want to be the product leader across the new technologies whichever comes first. Predominantly in India, the customers are more into combustion today and we are manufacturing those parts here but for EV and hybrid, manufacturing facility is not here as of now.
Q. So, do you have any immediate plans to manufacture EV components or hybrid in India?
Currently the volume is not there for hybrids and EVs in India. But we are closely following the trends and will be there as the market progress.
Q. As the requirement for emission components will be less in gasoline engine as compared to the diesel ones, how the company is planning to make-up for that?
We feel diesel is not going anytime soon in bigger engines and SUVs and of course commercial vehicle segment. It is expected to drive more growth for us with increased Government spending in infrastructure.
Q. Are you taking any measures to minimise the extent of cost hike that is happening due to BS VI?
Our manufacturing strategy is to always be close to the customer as we normally do not ship across the continents. We are planning to localise all those parts which will be required for BS VI transition and we are putting assembly lines for these components in India only.
For localising any parts we first check what our import content is based on the volumes as it matures. Then we see a possibility of localising those parts in India based on the readiness of our tier-II and tier-III. As we have done in BS IV with very high localising achieved that we will continue to do so with BS VI as well.
Q. What is your current level of localisation? Are you making any changes or addition in your suppliers to achieve that target?
We generally don’t prefer to share numbers. What I can say is we will continue to work with supplier base (old and new) to bring in the best cost-effective solutions without compromising on product performance. It will be a continued process until we achieve a reasonable level of localization.
Q. What production cut from OEMs mean for Borgwarner?
As the market has become unpredictable, we need to be agile so that we don’t overestimate and underestimate the market. Staying connected with our customers is the best thing we can do and plan accordingly, I think that is the key.