Exclusive: Continental AG to scale up its India R&D headcount this year

One of the world’s top five automotive component suppliers, the Germany-based Continental AG plans to scale up its Indian research and development headcount in 2015.

The 34.5 billion euro (Rs 263,718 crore) company, which has a well-balanced engineering footprint in India across multiple locations, has a dedicated technical centre in Bangalore (under Continental Automotive Components India – a 100 percent subsidiary of Continental AG) for the development of projects under advanced driver assist systems (ADAS), chassis and safety and other areas.

The technical centre mainly contributes to the group’s global product development in the area of software development for engine systems, infotainment and connectivity (CV aftermarket), electronic brake systems, chassis components and others.

The Continental Automotive Group in India is based across Bangalore (head office and technical centre), Pune (auto parts and Emitec Emission Control Technologies), and Delhi NCR (auto parts and automotive brake systems).

In a quick interaction with Autocar Professional in Hanover, Germany on the sidelines of the Continental’s Tech Show 2015 last week, Dr Elmar Degenhart, CEO, Continental AG (pictured above), disclosed that “the Indian R&D centre is already playing a very important role in our global new product development efforts. We are realising hundreds of new jobs within this year as we plan to scale up the employment in the R&D in India.”

The Bangalore-based tech centre, which is slowly and steadily gaining importance within Continental’s global product development programs, was established in 2009 employing close to 500-600 people. Expanding its operations, in January 2015, the company shifted its tech centre into an all-new 13,000 square-metre facility in Bangalore and the headcount currently stands at close to 1,000 people. The tech centre houses eight R&D labs.

It is known that the team at the technical centre is currently working on single-channel ABS solutions for two-wheelers, which are expected to gain mass prominence as early as 2017 when two-wheelers with engine displacement of 125cc and above will see mandatory fitment of the ABS systems.

According to an official communication from the company, “adding value with its understanding of the local market and customers, the technical centre is fast emerging as a ‘Center of Competence’ for two-wheeler markets and for customized products for the BRIC countries within Continental’s global umbrella.”

Dr Degenhart, who finds India’s growth prospects promising, told Autocar Professional that “we are having a two-pronged strategy – on one hand, we are investing into boosting our capabilities such as localisation, and on the other hand, we are investing into the gamut of R&D. Because of the economic slowdown in India in the last couple of years, the focus is shifted towards the R&D side. I think we will be more than happy if this would change. The market has to grow, India has such huge credibility and there are so many people who are positive about the country. It needs the right management and right management decisions to support the same.”

Commenting on Indian prime minister Narendra Modi’s visit to Hannover earlier this year, he said: “Boosting the manufacturing sector (through Make-in-India), I think, is the right direction. Though it’s too early to expect results as of now, I believe that manufacturing will help localising more in India. Localisation is the key. So you have work on the infrastructure as without that localisation will not work out. You have to get investors to invest into the country. You have to find ways to let the middle class grow. Everybody is highly confident that India will grow in the near future, not just in the context of vehicle production but beyond. You have to provide the environment to emulate growth.”