The initial investment of approximately Rs 25 crore will establish a production line capable of manufacturing 1,00,000 springs per month.
09 Sep 2024 | 2928 Views | By Shahkar Abidi
Stumpp Schuele & Somappa Springs (SSS), a player in automotive spring manufacturing and part of the MG Brothers Group, has entered into joint venture with Japan’s Chuhatsu to produce power back door (PBD) springs. This strategic move positions SSS as probably the first domestic producer of PBD springs in India, ...
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Stumpp Schuele & Somappa Springs (SSS), a player in automotive spring manufacturing and part of the MG Brothers Group, has entered into joint venture with Japan’s Chuhatsu to produce power back door (PBD) springs. This strategic move positions SSS as probably the first domestic producer of PBD springs in India, a market segment currently dominated by imports from companies like Aisin, Brose, and Magna. These imported kits are supplied to major OEMs, including Toyota, Mahindra & Mahindra, and Tata Motors.
"We are fully committed towards constant advancement through innovation and technology collaboration to enable our country to have access to the best in the world" said M R Satish, CMD, Stumpp Schuele & Somappa Springs. "The JV with CHUO is testimony of our ability to stitch alliance with best companies in the world. Such alliances are possible only if overseas companies see trust as the main virtue. This JV is the 8th alliance we are enabled" he added.
In India, PBD systems are presently limited to high-end vehicles, accounting for less than 1.5% of the market. However, SSS management forecasts a rapid shift, predicting that by 2027, PBD systems will be a standard feature in 70% of SUVs and sedans manufactured in the country. The partnership with Chuhatsu, known for its expertise in advanced spring technology, aims to capitalize on this growing trend, especially as automotive consumers increasingly prioritize comfort and convenience.
SSS outlined its ambitious plans during an investor presentation, emphasizing its commitment to leading the local production of PBD springs. The initial investment of approximately Rs 25 crore will establish a production line capable of manufacturing 1,00,000 springs per month, with operations expected to commence by December 2024. A second production line is planned for January 2026, significantly boosting capacity to meet anticipated demand
SSS’s R&D capabilities, bolstered by technical collaborations with Mitsubishi Steel Mfg. Co., Murata Spring Co., and Togo Japan, play a critical role in the company's ventures. SSS, already India’s largest automotive spring manufacturer, has leveraged these partnerships to develop advanced suspension springs, stabilizer bars, engine valve springs, and hose clamps. The SSS is also exploring new markets in defense and electric vehicle components, reinforcing its position as a leading innovator in the spring industry.
For the automotive sector, the SSS-Chuhatsu joint venture represents a significant step towards reducing dependency on imported components and aligns with the broader push for localized manufacturing in India. As the market for PBD systems grows, SSS’s strategic investments could push ahead the supply chain dynamics for comfort-enhancing technologies in the Indian automotive landscape.