DELPHI SEES HUGE POTENTIAL FOR ENGINE MANAGEMENT SYSTEM

 : Auto component manufacturer Delphi Corporation is set to capitalise on the huge business opportunity in engine management system as emission norms become tougher in India, according to a senior executive of the company.
 
It also wants to expand its outsourcing base for auto components to meet the needs of the aftermarket segment in the country.
 
Speaking to newsmen after the inauguration of Delphi Product & Service Solutions (DPSS) authorised wholesale distributors outlet at Stanes Motors (South India) Ltd here, Mr Dominic Seto, Managing Director, DPSS Asia Pacific, and Vice-President, Delphi China, said his companys product range for aftermarket segment in India consisted of four lines-chassis, vehicle electronics, thermal and consumer accessories. It has been catering to Indian and global original equipment manufacturers in the country.
 
He said he saw the engine management system as a key product line to power the growth of Delphi in India and thermal product such as compressors, condensers, evaporators and radiators were extremely popular. The other area he was bullish on was consumer accessories like video and audio products.
 
Growth with Partner
Asked about the reason for joining hands with local distributors to market its products in the after-sales market, Mr Seto said the company had tried this concept in China to display Delphis product capability and to let the consumers and its targeted customers such as technicians and mechanics evaluate them. This was a successful formula in China and he was confident that it would work in India as well.
 
Mr Ramesh Rao, Director, Indian Subcontinent, DPSS, said the companys OEM customers included Tatas, Maruti and M&M. The car market was growing and by 2015 it was expected to be around 25 million and he saw huge scope. The aftermarket segment also offered huge potential.
 
Mr Seto said his company did not see the aftermarket sales potential based only on regional vehicle manufacturing. Apart from the OEM opportunity, the company aggressively wanted to expand the non-Delphi manufacture base.
 
One of the great opportunities in the aftermarket segment was that the company was aware of components available and Delphi would not be able to fulfil everything. With a partner, Delphi could overcome the issue. The company was looking for a strategic supply base.
 
On the impact of recession on the auto industry, he said based on the indications in China and India in the first quarter of CY 2009, there has been slight improvement, though in the fourth quarter of last year, the industry faced challenging times. But demand was there in the aftermarket. In the first two months of 2009, the sales were hitting the budget which was exceedingly encouraging for Delphi and its distributors and it reflected the consumer confidence. DPSS is also increasing the headcount in Asia Pacific region.
 
Mr Seto said globally, vehicle emission control norms were becoming stricter and this required a lot of electronic components. The tougher the controls become, the greater the opportunity Delphi sees in engine management system.