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NIFCO India's Fourth Plant Targets Rising Auto Demand
NIFCO India leased a 5.13-acre plot in Maharashtra for its fourth plant, targeting rising domestic auto demand. The move underscores Japanese supply chain expansion in India.
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NIFCO India has leased a 5.13-acre plot in Shendra MIDC, Chhatrapati Sambhaji Nagar, for a new manufacturing plant, according to a company announcement. The facility will be the Japanese auto parts maker's fourth in India, adding capacity to serve rising domestic demand from car manufacturers.
The expansion comes as India's auto market, the world's third-largest by sales, continues to grow. Local production of vehicles hit a record 3.9 million units in the last fiscal year, driving component suppliers to invest in new capacity. NIFCO supplies interior and exterior trim parts, fasteners, and other components to both Japanese and Indian OEMs.
Shendra MIDC is part of the Aurangabad industrial belt, which hosts plants for Bajaj Auto, Skoda, and Volkswagen. The location gives NIFCO proximity to existing customers and export routes through the Mumbai port.
The company did not disclose the investment value or production timeline for the new plant. NIFCO's existing Indian factories are in Pune, Chennai, and Gurugram. The company first entered India in 2006 and has expanded as automakers increased local sourcing.
The lease signals continued appetite among Japanese auto component suppliers for Indian manufacturing capacity. Rival suppliers including Denso and Aisin have announced similar expansions in recent quarters, citing the same demand trends. For NIFCO, the fourth plant reduces dependence on any single site and allows it to split production by customer or product line.
The Maharashtra plant will likely focus on high-volume components for passenger vehicles, where NIFCO faces competition from local players like Minda Industries and Endurance Technologies. The key advantage for Japanese suppliers is their tie-up with global automakers who prefer proven partners for new models.
India's auto component industry exported $20 billion worth of parts last year, and the government's production-linked incentive scheme for automotive and auto components has boosted investment. NIFCO's lease is the latest evidence that foreign suppliers see India as a production base for both domestic sales and exports.