The Hindu Business Line : Sona Koyo bags GM order for steering systems

"It is a fairly important order for us," Dr Kapur said, declining to give details of the new car model, which he said is codenamed D200. It is the first time Sona Koyo has won an order from General Motors, he said. Sona Koyo is negotiating for more orders from Renault SA and other carmakers setting up Indian factories, Dr Kapur added.

The company is focussing aggressively on the export markets as well and expects 20 per cent of sales to come from overseas markets next year, up from about 13 per cent this year. By 2010, as much as 45 per cent of sales will come from overseas, Dr Kapur said.

He said that the French components company Fuji Auto Tech, in which Sona Koyo had picked up 21 per cent stake last year, is buying a components company in Brazil and is picking up 66 per cent stake in another Czech based firm. These acquisitions will, however, reduce Sona Koyo's stake in Fuji Auto Tech to 17 per cent.

Dr Kapur added there was ``no progress yet'' in plans to buy assets of Delphi Corp, which has filed for bankruptcy in the US.

As part of its expansion plans, Sona Koyo is investing Rs 35 crore to build a new plant in Haryana.

``The new plant will have a capacity of 100,000 electronic power steering systems a year,'' Dr Kapur said. Sona Koyo's total production capacity will rise to 900,000 steering systems a year once the new facility in Haryana goes on stream next year, he added.

Sona Koyo, in which Japan's Koyo Seiko Co owns 20.47 per cent and Maruti Udyog Ltd 7.85 per cent, also plans to expand its facility in Chennai.

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