Czech firms aim to expand India footprint

Automakers, engineering parts manufacturers and cable car producers of the Czech Republic have committed themselves to increasing investments in India. Foremost among this is Skoda, manufacturing cars out of Aurangabad, Maharashtra, looking to boost local hiring and expand production facilities.

“We expect strategic investments into the engineering manufacturing space to play a big role in improving longterm trade and investments,” Czech Ambassador to India Milan Hovorka told Business Standard.

This includes firms such as Elcomponic Ray Systems — a top cable harness manufacturer for the aviation and military industries, expected to soon start production in Noida. Also on the list is Bonatrans — the manufacturer of rail wheelsets operating out of Aurangabad.

Companies have also integrated their manufacturing processes to focus on making in India with the Skoda Rapid now being the most localised car and others closely set to follow suit, said Hovorka.

The Czech Republic is currently India’s third largest export destination for engineering goods in Europe, a hitech enabled market seeing significant price appreciation over the past few years. The small Central European nation may, however, catch up with regional biggies such as France and Germany, where most of India’s engineering-based shipments in a automobile, aviation, and machinery go with more firms from each side venturing into business linkages, a senior Indian exporter with interests in the country said.

In 2016-17, Indian exports of $533 million include more than $200 million worth of industrial machinery, aviation and automobile components and growing shipments of iron and steel.