Japanese companies to seize the Indian automotive chemicals market

The automobile industry began to take off the supply of local raw materials

After 10 years, India may become the third largest automobile producer in the world, attracting a large number of Japanese vehicle manufacturers to set up factories; localization and procurement of raw materials for vehicles is difficult, and Japanese companies will start to follow the footsteps of vehicle companies. Invest in India.

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 in November that it will acquire local factories in India, establish 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 auto injection molding products, and utilizes the advantages of products, technologies, and design of Sekisui Chemicals and Technology Molding Co. 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 cooperation 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 field 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. It will manufacture and sell automotive nylon and polybutylene terephthalate (PBT) engineering plastics.

Japan's Tokai Rubber Industry Co., Ltd. announced in August that its new vehicle anti-vibration rubber pad factory in the suburban area of ​​Bangalore in southern India will be fully operational in January next year. Shockproof rubber pads are used in engines and tires to reduce vibration and noise. With the rapid development of the Indian automotive market, East China Sea Rubber will also expand its production capacity in the country. The new factory product will be provided to Japanese automakers such as Toyota Motor Co., with a sales target of approximately 700 million rupees in 2015.