GKN Driveline bags RE60 supply mandate

GKN Driveline, which has been working with Bajaj Auto for two years, has developed the driveshaft for the RE60, the four-wheeler that Bajaj showcased at the Auto Expo. GKN Driveline’s managing director Ravindra Ojha told Autocar Professional that GKN has worked earlier with Bajaj on wheel drive and differential issues and has now co-developed the driveline for the RE60. The RE60, positioned between a three-wheeler and a regular taxi, will make its debut later this year.

Ojha said it was an interesting thought process that went in the development of the driveline for the RE60 and that it was a great learning for GKN as well. He added that GKN is working on projects with the likes of Atul Auto, Bakshi, Continental and MLR. “If it does make business sense, we will get on board,” he added.

GKN Driveline has had a roller-coaster of a year in 2011. With the passenger car market on a roll in the first quarter of 2011, the company was able to leverage that to do phenomenal business. But then, as a result of fuel price and interest rate hikes, passenger car sales fell, in turn impacting GKN’s business. Moreover, its largest customer, Maruti which accounts for 45 percent of its business, had a major strike in the second half of the year. “We had a mixed bag of a year,” Ojha said.

The company, one of India’s largest players in the driveline business, is currently building a new Rs 130-crore plant in Pune to cater to its clients in western India. These clients include Volkswagen India, Fiat, Tata Motors and General Motors India. In the first phase, the new facility, to be staffed by 200 people, will roll out 60,000 constant-velocity joint (CVJ) systems.

Based on demand, this capacity can be boosted to 1.2 million in the second phase. The company plans to make differentials from its Trans Axle Solutions product range. Last November, it inaugurated a Rs 48 crore precision forgings unit near Chennai. This facility will supply forgings to GKN’s Oragadam plant. A relatively new area for GKN is the aftermarket which it is studying closely. Last year, 20,000 sideshafts were sold through the company’s 20-strong dealer market and going forward, the company feels that demand will strengthen in the next four to five years.

GKN Driveline has three manufacturing facilities at Dharuhera, Faridabad and Oragadam. The company supplies its products to almost all Indian OEMs with its top three being Maruti Suzuki, Hyundai Motor India and Tata Motors.