CHENNAI: Fast growth of India's automobile sector are capturing the investment interests of the Chinese auto industry, with India's first auto plastic fuel tank maker in scale YAPP-ZOOM starting production Monday.
YAPP-ZOOM is a joint venture of China's YAPP Automotive Parts Cooperation and India's Zoom Enterprises and is the first investment to India from a Chinese auto part company.
The joint venture YAPP-ZOOM was established in Chennai in 2008. Its clients included Volkswagen India, Ford India, and Indian automobile manufacture Mahindra & Mahindra.
The Chennai plant can produce 250,000 plastic fuel tanks annually so far, expecting 80 million rupees ($1.7 million) of sale for the first year. The second production line planned for 2011 will double the annual production. YAPP-ZOOM are also looking to set up another manufacturing plant in Pune.
YAPP's President Sun Yan expected India to be the biggest overseas' market for China's largest plastic fuel tank manufacturer which has invested in Australia and Russia and planning to set up plant in Czech aiming European market. "India is becoming a big producer and consumer of automobiles after China, we are very positive on its growth potential," He said.
As SAIC-GM, the 50:50 joint venture between Shanghai Automotive Industry Corporation (SAIC) and General Motors established last December, plans to introduce SAIC light trucks to Indian market, " more Chinese auto part companies will come to invest in India following YAPP," said Jiang Zhiwei, the vice president of SAIC.