Japanese car audio and entertainment system maker Pioneer Wednesday said it is exploring the possibility to set up manufacturing facility in India to tap the fast growing automobile market here.
The company is looking to supply its audio systems directly to vehicle manufacturers as factory fitments, a top company official said.
Besides, the company, which presently has around 40 per cent market share in the after sales car audio 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, Pioneer India Managing Director Toshiyuki Yoshikawa 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, India is their one of the fastest growing markets globally in terms of growth ratio.
Pioneer National Sales Manager Manvir Ahuja 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 car audio 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, Sony etc are competing into the segment.
"The industry is evolving as the average spend on the car is increasing," Ahuja added.
Pioneer car audio products 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.)