BANGALORE, INDIA: The international automotive supplier Continental has launched its new electronic manufacturing facility and R&D centre near Electronic City, Bommasandra, Bangalore, India. With a total investment of Rs. 220 crores, the new facility will develop and produce electronic components for the booming auto electronic market in India.

In this facility, electronic components will be developed and produced all three Continental automotive electronics divisions: chassis and safety, powertrain and interior. The new plant will manufacture instrument clusters for passenger cars, commercial vehicles and two-wheelers, immobilizers, engine management systems for diesel and gasoline engines, electronic control units (ECUs) for power assisted steering and body control units out of the Interior Division.

Jay Kunkel, President Asia and Member of the Automotive Management Board of Continental, said: "According to the forecast, from 2012 onwards nearly one out of two cars worldwide will be manufactured in Asia and much of the growth on the Asian auto market will come from the emerging markets like India and China. Also, in the next decade one of the main focuses of the automotive industry will be the so-called megatrend 'affordable cars', especially in the growth markets like India and China. The Indian emission norms and safety leg-islations are getting stricter, the vehicles of tomorrow will have more and more electronics built into them.

We recognize the importance of India and the investment here in this new plant is a further proof that we take our plans to further increase our presence and business in India very seriously. Moreover, it reflects our strategy to build and strengthen our network and our manufacturing operations in Asia to reinforce our leading role in Asia as Continental intends to make 20-25 percent of our total sales in this region by 2015."

Dr. Markus Distelhoff, Managing Director of Continental Automotive Components (India) Pvt. Ltd., added: "The Indian automotive market is expected to grow at a CAGR of 15 percent. This phenomenal growth opportunity has made it strategically important for Continental to deepen our business in India. We aim to translate our extensive expertise into vehicle technology to provide affordable components and systems to the Indian market. Localization of the entire value chain of R&D, sourcing and manufacturing is our key focus for success in this market. The new plant shows the firm commitment of Continental to the Indian automotive industry and to create a strong footprint in India".

The Continental automotive R&D and manufacturing facility is situated on a land space of about 18,000sqm with about 15,000sqm of total built up area. There are in total three surface mounting technology lines, four pre-assembly cells and sixteen back end cells. This manufacturing unit can accommodate 400 employees in the office area and the R&D centre can accommodate another 400 engineers. Its manufacturing facilities, technical labs and offices are built in line with Continental's global standards.

Continental in India is backed by the rich legacy of service of 50 years in the Indian automotive market. It is constantly evolving and growing with the market from being a leading supplier of mechanical instruments to supplying high end auto electronic components to meet the industry demands. Through the current R&D facilities in Bangalore, Continental off-shores also development work for its other locations in Europe and NAFTA. Besides en-gineering capacities, testing and validation services will also be provided from this develop-ment centre.

With the widening product offerings from the three automotive divisions, the ContiTech division, being the worldwide market leader in non-tire rubber products, and the tires divisions, Continental in India can now command a significant share of the Indian automotive supplies market. The company is targeting 60 percent CAGR in its India business by 2012.