With an eye toward India’s motorcycle expansion, CTS Corp. (CTS) expands its Asian growth.
Following India’s growing openness, the arrival of new and existing models, easy availability of finance at relatively low rates of interest, and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.
Government has liberalized the norms for foreign investment and import of technology, and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. Years 2007 and 2008 were a bit lumpy, as expected. According to EconomyWatch, it is likely that the production of such vehicles will exceed 10 million in the next couple of years.
More specifically, India is seeing the penetration of two-wheelers increasing at a rapid pace, driven by the rise in the household incomes, the reducing trend in excise duties and easy availability of two-wheeler finance. Rural India could be the next growth leg, according to www.researchandmarkets.com.
CTS recently announced that it was awarded a new production program for a small engine throttle position sensor (SETPS) by an Indian Tier 1 supplier. The SETPS will be part of the carburetor assembly on engines for motorcycles produced by a major Indian motorcycle manufacturer for the Indian market. The SETPS will be a key component that will enable the motorcycle manufacturer to meet tightening emission standards that are being introduced in India.
Production is anticipated to begin late 2009 with 2010 revenues from this initial win approximating $1.5 million, with additional growth potential as multiple platforms adopt this technology.
Read the full analyst report on “CTS”
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