Comstar plans assembly plant in Thailand to target ASEAN market

Chennai-based Comstar Automotive Technologies, the Tier 1 supplier of starter motors and alternators for passenger cars and light commercial vehicles, is actively considering setting up an assembly unit in Thailand to cater to demand in the ASEAN region. The company currently supplies to Ford, Volvo, Jaguar, Aston Martin, Mazda, Tata Motors and the Ashok Leyland-Nissan joint venture in the US, Europe and India.

Speaking to Autocar Professional on the sidelines of an event in Chennai recently to celebrate the company winning Ford Motor Co’s ‘World Excellence Award – 2013’ for supply of starter assemblies, Sat Mohan Gupta CEO and president, Comstar Automotive Technologies, said: “We are working on an opportunity in Thailand to support the ASEAN region where we are not present as of now. Sub-assemblies will go from India and we expect some of the components or sub-assemblies, which are readily available in Thailand, to be procured from there.” While the location for the new plant has not yet identified, Gupta said it could come up by the next fiscal year (2015-16). He added that the company is currently working on a number of new technologies and advance solutions for hybrid applications.

Comstar is also exploring new business opportunities in BRIC markets. The company, which currently supplies its customers in China through its Chinese partner, is eyeing a JV opportunity in that market. It is also game to address the South American market through Brazil; it is understood that the company had in the past attempted a partnership there but the project did not take off.

In 2013-14, Comstar recorded a growth of 17-18 percent, thanks to its new manufacturing unit in North America which commenced production and added about 20-25 percent to overall business. This year (2014-15), the company is expecting growth of 8-9 percent.

Comstar’s Chennai facility has an installed capacity of over three million starter motors, of which it utilises about 55-60 percent at present, leaving it with ample capacity to cater to new clients. It is working with existing customers to cater to new vehicle platforms which are likely to see fruition this fiscal. 

Commenting on Ford’s quality award for the company, Gupta said it is an honour for the company and brings in an additional responsibility to enhance quality further. “To achieve this, we have worked on several initiatives to stay competitive. We don’t have any delivery issues and have better quality than competitors,” he added.

Comstar, he said, has taken several R&D initiatives to make itself more self-reliant than before. Its R&D hub in Chennai, staffed by 35 engineers, conducts advance and current model engineering.

Photograph: Comstar Automotive’s Sat Mohan Gupta, seen here in this file photo of the North American plant.

Also read: Comstar sole Indian supplier to win Ford’s World Excellence Award 2013 bit.ly/1ki5OkG