Key Safety System (KSS), $1-billion US automotive safety component maker, has taken 50% equity in Delhi-based Abhishek Auto Industries for an undisclosed amount.
KSS — maker of safety components like airbags, seat-belts, inflators, steering wheels and electronic systems — will invest $20 million in the next three years as part of the joint venture with Abhishek Auto. This will help expand its manufacturing operations in India.
The company, which is a supplier to original equipment manufacturers (OEMs) like Audi, Chrylser and Toyota, is planning to extend its customer base to include German car maker Volkswagen and French car maker Renault. Both companies have recently started operations in India.
KSS president and CEO Jason Luo said in Delhi on Wednesday, “We plan to have India’s first integrated facility for manufacturing airbags and steering wheels. We will also introduce curtain and side airbags, which are increasingly becoming a standard fitment in all modern cars. India is a great potential market for us and we will tap many of our global OEMs, which have recently entered India and are not being sourced by Abhishek Auto.”
The company will be expanding its monthly seat-belt production to 2 lakh car units from the present 1.3 lakh units and introduce the latest pre-tensioning technology for seat belts in the domestic market.
Source: Economic Times