Sona to hike new steering system capacity, invest Rs 50 crore

Group is investing Rs 50 crore to hike monthly capacity to 8,000 units from the current 3,000 units at its Dharuhera plant

Auto component major Sona group is enhancing production capacity of its new power electronic steering system as it targets domestic farm and off highway vehicle makers for its new offering.

The group, which already supplies its new EPAM (Electric Power Assist Module) to US-based John Deere, is investing Rs 50 crore to hike monthly capacity to 8,000 units from the current 3,000 units at its Dharuhera plant.

"We have been supplying the EPAM that we have developed in-house to John Deere in the US. We see a great potential for it in India in the farm and off highway vehicles segment, which is where our next focus is," Sona Group Vice Chairman and Managing Director Sunjay Kapur told PTI.

Stating that the group is currently in talks with Indian manufacturers for supplying the EPAMs, he said the response has been good so far.

"We are confident of starting to supply to some of them from next year," Kapur said, without disclosing the identity of the potential customers.

On fresh investments, he said: "Over the next one year we are investing Rs 50 crore to enhance the line of EPAM manufacturing at our Dharuhera plant to 8,000 units a month from the current 3,000 units."

Part of the enhanced capacity will also be for catering to the expected enhanced demand from exports to the US, he added.

Kapur said the group has also applied for patents for the EPAM, a system that provides assistance and makes it easier for a driver to steer off highway or farm vehicles.

When asked if Sona is targeting European market for the new steering system, he said: "Right now we are doing well in the US. We want to consolidate there and also at the same time, the Indian market is very attractive. Our focus will be these two markets at present."