Japanese car audio and entertainment system maker Pioneer said on Wednesday it was exploring the possibility of setting up a manufacturing plant in India to tap into the rapidly growing automotive market here.
New Delhi: Japanese car audio and entertainment system maker Pioneer said on Wednesday it was exploring the possibility of setting up a manufacturing plant in India to tap into the rapidly growing automotive market here.
The company is looking to supply its audio systems directly to automakers as factory equipment, a senior company official said.
In addition, the company, which currently holds around 40 percent of the market share in the aftermarket automotive audio segment, is looking to hold a 50 percent market share over the next year.
OEM activities and customer side requirements focus on starting local production, said Toshiyuki Yoshikawa, general manager of Pioneer India. PTI, adding that “to meet these expectations, we could go”.
He added, however: “We have not yet decided … we are studying the market.”
According to Pioneer, India is one of the fastest growing markets in the world in terms of growth rate.
Pioneer’s national sales manager Manvir Ahuja said the proposed plant could also help the company lower the cost of its units, in order to remain competitive in the aftermarket.
âThe study is ongoing not only from an OEM perspective, but probably later this box (unit) can be used for automotive audio to keep our costs down,â he said.
However, he declined to share the amount of investment Pioneer could invest in setting up the manufacturing unit here, saying “it’s still under review.”
âThere are so many factors that need to be considered like locations, availability of manpower, etc. Ahuja added.
Currently, the company imports its entire line from its global manufacturing units.
In the after-sales service segment, Pioneer aims to expand its market share to almost 50%.
âWe would focus on affordability and innovations in the Indian market to expand our market share,â he added.
At present, the Indian aftermarket automotive audio market is estimated at around 1 lakh per month and there are several companies including JVC, Sony, etc., competing in this segment.
âThe industry is changing as average car spending increases,â Ahuja added.
Pioneer car audio products start at Rs 3,000 and go up to Rs 50,000.