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Japan's Pioneer keen to set up mfg unit in India to tap fast growing auto segment

Press Trust of India  |  New Delhi 

Japanese and Pioneer Wednesday said it is exploring the possibility to set up manufacturing facility in to the fast growing automobile market here.

The company is looking to supply its directly to vehicle manufacturers as factory fitments, a top said.

Besides, the company, which presently has around 40 per cent market share in the after sales segment, is looking to have 50 per cent market share in the next one year.

OEM business and requirements from customer side have stress on starting local production, told PTI, adding that "to meet that expectations, we might go for it".

He however added: "We have not decided yet... we are studying the market."

According to Pioneer, is their one of the fastest growing markets globally in terms of growth ratio.

said the proposed plant may also help the company to reduce the cost of its units, to remain competitive in the after sales market.

"The study is going on not only for OEM point of view but probably later on this can (unit) can be utilised for to scale down our cost," he said.

However, he declined to share the quantum of investment, which Pioneer may put into setting manufacturing unit here, saying that "it is still under consideration".

"There are so many factors which have to be taken into consideration like locations, availability of labour force etc," added Ahuja.

Presently, the company imports its entire lineup from its global manufacturing units.

In the after sales service segment, Pioneer is aiming to expand its market share to almost 50 per cent.

"We would focus on affordability and innovations in the Indian market to expand our market share," he added.

Presently, the Indian car audio after sales market is estimated to be around one lakh units per month and several companies which includes JVC, etc are competing into the segment.

"The industry is evolving as the average spend on the car is increasing," Ahuja added.

starts at Rs 3,000 and goes upto Rs 50,000.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 05 2018. 17:45 IST