Japanese companies invest in Indian automotive plastics industry

At the 2011 India Automotive Plastics Congress in Mumbai on November 24, the Indian Automobile Manufacturers Association stated that the production of passenger and commercial vehicles in India will increase significantly from 3.7 million in 2010 to 13 million in 2020. At that time, India will become the third largest automobile producer in the world and may even become the second largest automobile producer.

Several major Japanese automakers including Toyota Motors and Nissan Motor Co. have seen rapid growth in India's auto industry in recent years. They have set up factories in India, plus existing Suzuki and Honda Motor Corporations, and Japanese automakers in India. A "hundred flowers bloom" situation has emerged, but the localized procurement of raw materials required for automobile production remains difficult. Under this market background, Japanese chemical companies have marched to India to set up factories for local production.

Sumitomo Bakelite announced today that it will acquire local factories in India, set up local production bases, and manufacture and sell automotive phenolic resins and composites.

In August, Japan's Sekisui Chemical Industrial Co., Ltd. established a joint venture with India's DLJM in Delhi, India. It is mainly engaged in the production and sales of automotive injection molding products. It uses the advantages of products, technologies, and design of Sekisui Chemicals and Technology Molding. Japanese automakers' services have been used to accelerate the overseas development of the company's auto parts forming business. The company expects sales of this part of the business will reach 3 billion yen in 2013.

Kurabo Industrial Co., Ltd. has started to establish a base in India at the end of November to train production personnel of polyurethane foam manufacturers in India. This is part of the globalization strategy of Kurabo Industries. Polyurethane soft foams are mainly used as automotive interiors and car seat cushions. At the same time, Kurabo Industries has also established a polyurethane foam production base in Guangzhou, China. The new plant in Sao Paulo, Brazil will also be put into production in 2012.

Japan JSP company is the world's leading manufacturer of foamed polypropylene materials. The company is currently implementing capacity expansion in Asia, including a new factory in Chennai, India. The foamed polypropylene material can be widely used in the fields of impact protection, interior components, seats, and sound insulation of automobiles. In addition, this material can also be used in IT products and electrical appliances.

Toray Industries announced at the end of September that it will implement localized production of engineering materials in emerging markets including India to meet the rapidly growing needs of the local automotive industry. Toray Industries has opened a liaison office in Mumbai, India, and established Toray International (India) in a joint venture to manufacture and sell automotive nylon and polybutylene terephthalate (PBT) engineering plastics.