By By Pramod Thomas
Exedy India Limited, manufacturer of clutches and torque converters, plans to set up a new production facility in Gujarat, in Western India, by 2020. The Indian arm of the Japan-based Exedy Group is also readying itself for the electric vehicles trend in India, Naoki Yoshii, Managing Director, Exedy India, told AutoParts Asia.
“Maruti Suzuki is one of the major customers of Exedy India. With more than 50 percent market share, Maruti has big plans for the Indian market. It will increase the capacity of its Gujarat plant by 7.5 lakh cars by 2020. As suppliers, we also follow them and plan to start our production facility around the same time there. At present, I can’t reveal any numbers. We are just considering the option. The plan is to start investing in Gujarat from 2020 onwards,” Yoshii said. The company has no plans for any joint venture.
Exedy India manufactures and sells manual clutches for passenger and commercial vehicles (three and four-wheelers) and one-way clutches for motorcycles. The company produces clutch packs and torque converters for automatic transmission vehicles. Exedy also makes clutch disks and covers used in manual transmission vehicles all over the world. About 63 percent of the revenue of the company in 2017 was from automatic transmission products and the rest from manual transmission products. Exedy also makes clutches for motorcycles that meet the demands of the rapidly developing markets of South-East Asia and also produces construction, industrial, agricultural products.
If the electric mobility trend picks up in India, the company will definitely look into it,Yoshii said.
“Currently, all our products cater to IC Engine vehicles. Maybe in 10-15 years, if the demand for electric vehicles or hybrid cars picks up in India we will definitely switch to this. Exedy Japan is developing a new type of clutch for electric vehicles. It is under development in Japan. It is also developing new products for hybrid vehicles. The products that Exedy is working on include vibration damper system to absorb oscillation when switching the hybrid power source from engine to motor (and the other way round); and a torque limiter that prevents excessive load on the engine. We will introduce the Damper System in India when the stage is set,” he said.
Established in 1950 as Daikin Manufacturing, the company manufactures high-quality clutches and torque converters. In 1995, the name of the company was changed to Exedy Corporation following a corporate decision. The Exedy Corporation has production locations in 25 countries, 44 affiliates, over 18,400 employees and does business with over 100 countries. The Group made sales of $2.55 billion in 2017.
To Become No.1 Clutch Maker
Exedy India was established in 1973 as Ceekay Automotive in Mumbai and started production and sale of clutches in 1977. In 1999, the Noida plant was started. The name was changed to Exedy India in 2010.
Currently, the products of the company are being supplied to both local and Japanese automobile manufacturers as well as to aftermarket customers. It employs 1270 people. The company targets to be the number one clutch maker in India.
“We have two production locations, one in Noida, and the other in Aurangabad. We also have two aftermarket sales offices located in Pune and Chennai. Our main office, which handles matters throughout India, is in Mumbai. Since 2008, in addition to the current product range for clutches, we have been producing and selling one-way motorcycle clutches. We are contributing to the local society through our business operations that steadily supply products to India’s domestic market, which is one of the most rapidly growing markets in the world today. Following our name change from Ceekay Daikin Limited to EXEDY India Limited in November 2010, we, both in name and in actuality, have been reborn as an Exedy Group member located in a country that is currently one of the world’s emerging economic markets. Exedy India would like to achieve further development by contributing to the rapidly growing Indian market,” Yoshii said.
Exedy Japan has a 100 percent subsidiary in India. Besides, it has a sister company in Bangalore in South India called Exedy Clutch India. This company is also making clutches. Both of these companies are part of the group. The customers of Exedy India include all the Japanese OEMs, and Indian companies such as Maruti Suzuki, Tata Motors, Eicher Motors, Mahindra, and in the two-wheeler segment Hero, Bajaj etc. The one-way clutch for motorcycle capacity is 5.4 million units and clutch for MT vehicle capacity is 2.5 million sets per year. The company has reported sales of Rs 2902 million in 2016 and expects to post Rs 3829 million in sales in 2018, registering a growth of 32 percent. The largest revenue contributors for Exedy India are Maruti Suzuki (25 percent) and Hero MotoCorp (18 percent). In 2017, Honda cars acquired 33 percent of products from Exedy, which was increased to 52 percent in 2018, which the company considers as a big achievement.
“In India, we are witnessing a significant increase in demand. As of now, we are upgrading our existing facilities. We are also exporting from India to Nepal, Bangladesh, Srilanka, South America, Africa and Europe. The new products for the Indian market are clutches for commercial vehicles for Eicher and Tata Motors. We also have heavy duty clutches and products for agriculture tractors. We are covering not only passenger cars but all ranges of cars including SUVs, larger vehicles and motorcycles,” Yoshii said.
In 2018, Maruti CIAZ, Ertiga, Wagon R and Honda Brio Amaze started using Exedy products. In the two-wheeler segment, Honda Xtreme 200 R, Honda X Blade and Suzuki Intruder are powered by the products of Exedy.
“Exedy’s products and the technology behind them are regarded highly the World over, where many automobile manufacturers select them to be used as OE parts in their vehicles. Through advanced technology and scrupulous attention to detail, we will create fulfilment for our customers,” Naoki Yoshii points out.