TOKYO, April 18 (Kyodo) — Mitsubishi Heavy Industries Ltd. said Wednesday it will start producing gear cutting machines in India starting October to tap into growing demand in the country's auto and motorcycle sectors.
The company has set the production target for the facility to be set up in Bengaluru at about 40 units in the initial year and plans to expand it to 100 units per year within two or three years.
The new plant, to be established with an investment of roughly 500 million yen, will initially import small gear-making machines from Japan and attach the peripheral devices at the new plant to make the gear cutting systems needed in the production of motorcycles, it said.
"Production in India would also help us hedge the exchange risk" amid the yen's strength against major currencies, said Yukio Kodama, the head of the company's machine tool division.
Mitsubishi Heavy Industries said it will start producing gear cutting machines in India starting October to tap into growing demand in the country's auto and motorcycle sectors.