INDUSTRY PROFILE Indian Auto Components Industry: The Indian auto ancillary indu

stry has come a long way since it had its small beginnings in the 1940s. If the
evolution of the industry is traced in India, it can be classified into three di
stinct phases namely: Periodprior to the entry of Maruti Udhyog Ltd, period afte
r the entry of Maruti Udhyog Ltd and Period post Liberalization. The period prio
r to the entry of Maruti Udhyog Ltd was characterized by small number of auto ma
jors like Hindustan Motors, Premier Automobiles, Telco, Bajaj, Mahindra & Mahind
ra, low technology and assured business for most of the auto component manufactu
rers. The entry of Maruti in the 1980s marked the beginning of the second phase
of the industry. The auto ancillary industry in the country really showed a spur
t in growth during this period. This period witnessed the emergence of a new gen
eration of auto ancillary manufacturers who were required to meet the stringent
quality standard of Maruti s Korean collaborator Suzuki of Japan. The good perform
ance of Maruti resulted in an upswing for the domestic auto ancillary industry.
It was during this period that auto components from India began to be exported.
The entry of foreign automobile manufactures ranging from Mercedes Benz, Ford an
d General Motors to Daewoo following the government liberalizing the foreign inv
estment limits saw the beginning of the third phase of the evolution of the indu
stry. The auto ancillary industry witnessed huge capacity expansions and moderni
zation initiatives in the post liberalization period. Technological collaboratio
ns and equity partnerships with world leaders in auto components became a common
affair. However, the global automobile majors soon realized the folly of their
estimations in India. The market did not seem to be as big as it appeared to be.
Hence, sales targets went away. The tough competitive scenario saw a lot of con
solidation in the industry and it still continues unabated.

Global Scenario: Prior to 2000, it had been almost ten years since TTS (torq tra
nsfer systems) had been awarded any new transfer case business for the European
market (Land Rover). Then concerted efforts were made to re-enter that market &
attain new business with improved technologies such as high output transfer case
s & Torsen Torque Differential technology which broadens the industries offering
in the transfer case market place. In the global Scenario of transfer case indu
stry there are significant differences between the American & European Markets.
While the American car-buyer is primarily interested in traction & larger, more
powerful vehicles, the European driver is more interested in vehicle handling, s
tability & safety. Therefore for their home markets, European auto makers are pr
oducing smaller, front wheel drive vehicles. But as the American car buyers are
more interested in powerful engines the automakers are offering a wide range of
SUV s for which the Torq transfer System ( TTS) is particularly well suited making
the 2 wheel drive into 4 wheel drive ( 4 x 4 ). The vehicles tend to be technic
ally more sophisticated creating new market potential for TTS. Borg Warner & TTS
(Torq Transfer Systems) The Company engineers work closely with the Drivetrain
group in engineering strategy & provide many opportunities for collaboration & l
earning of TTS. TTS engineers frequently make customer presentations along with
colleagues from TS. This collaboration allows the Company to talk about the comp
any s all-wheel drive products while TS engineers present other Drive train techno
logies that Borg Warner has to offer, including the very successful Dual Clutch
Technology, which is generating much attention in Global markets. Other Borg War
ner business groups have helped to establish a great reputation
for Borg Warner at the Global level. The company s commitment to new technologies
&
new products for the automakers will help TTS become a future Product Leader in
Auto
industry