Magneti Marelli targets 200,000 AMTs a year in India

Since the launch of the Maruti Suzuki Celerio, Magneti Marelli has gained popularity for its Automated Manual Transmission units in India. Due to their cost effectiveness, efficiency and convenience, demand for AMT equipped cars like the Alto K10 and Zest diesel has risen. Since supply of these units failed to keep up with their demand, customers are facing long waiting periods.

Earlier we had reported, how Maruti was working with Magneti Marelli to increase production from 3,000 units to 5,000 units a month; thus reducing waiting periods. In 2014, 27,000 units were sold to original equipment manufacturers. At an investment of Rs. 150 crores, the Italian company has set up a new manufacturing facility for automated manual transmissions at Manesar, Haryana. By the third quarter of FY16, the capacity is expected to reach 2,00,000 units. Also, localization levels are expected to reach 100%, thus, keeping the costs in check. Currently, these units are imported.

The AMT manufacturer is now seeking to double its revenue in the country from 160 million euros (~Rs. 11,000 crores) to 400 million euros (~Rs. 28,000 crores), over the next three years. It also expects its Indian subsidiary's contribution to its global revenue to rise from 2% to 4% by 2018.

At present, these AMT units are supplied to Maruti Suzuki and Tata Motors. By the end of this year, two more manufacturers are expected to use these transmissions.

Source: ET Auto