The auto component supplier giant, Bosch is expanding its manufacturing capacity of critical components used in diesel engines by about 30 to 50% in view of the enormously growing demand for diesel powered cars in the Indian automobile market. The investment to increase the supply will be to the tune of some crores. The German firm has already lined up an investment plan of Rs. 1000 crores for the Indian market, a significant part of which will be going towards the expansion of capacity.
V K Viswanathan, managing director Bosch Ltd and president Bosch Group India told that the share of diesel cars has gone up from 32-33% to more than 40% and he says it may see that increasing to 45-50% in the next few years. The company had anticipated this much earlier and they are gearing up to meet that demand. However, he expects the vehicle market in India to remain sluggish in the first half of 2012 but with expected rate cuts from the Reserve Bank, things might see a bright light.
Bosch has already expanded production capacities of few key components used in diesel engines like classic nozzle holder, common rail injectors and DSLA nozzle. The capacity of classic nozzle holder is increased from 17,000 to 26,500, common rail injectors from 6000 to 9000 and DSLA nozzle from 18,000 to 30,500 per day. It has also expanded the production space at its plants in Nashik in Maharashtra and Jaipur in Rajasthan. Currently Bosch holds 85% of the diesel injection system market in India.