Magna, through its wholly owned unit Cosma International, has started manufacturing operations at its ladder frame plant in the Indian city of Pune, Maharashtra, reports the Hindu Business Line. With a total investment of INR2.5 billion (USD40.4 million), the facility will supply ladder frames exclusively to Mahindra & Mahindra (M&M). As well as the recently launched revamped Scorpio, the frames will be used in the automaker's future products.The plant's monthly production capacity is currently 225 frames, although this can be scaled up if required.
Significance: Magna has been expanding its engineering and manufacturing footprint globally and the plant in Pune marks another step in that direction. Investment in the plant was first announced in December 2011. Being the sixth largest automotive market in the world, India is a crucial location for most global suppliers, and although passenger vehicle sales in the country suffered last year, market conditions are improving now. Last week, the Canadian supplier formed a joint venture with Tata Autocomp and announced plans to open two new manufacturing plants in the state of Gujarat. Including the two latest plants, the company's total number of manufacturing locations in India will increase to 11.
