Initially, the Indian division of Tokyo-based Pioneer Corporation plans to contract out the production of its products through outsourcing agreements in India, with prospects of later exploring a joint venture for internal manufacturing.
Pioneer India, a branch of the Japanese Pioneer Corporation, is currently engaged in advanced negotiations with several automotive electronics manufacturers to locally produce in-car entertainment and safety products, including dash cameras, as reported by senior company officials.
Pioneer India Managing Director Aniket Kulkarni said on Tuesday that the company is committed to localising its entire product line in India. He mentioned that there are many active discussions underway with potential partners for local manufacturing.
The product range offered by Pioneer India includes car entertainment systems like stereos, speakers, woofers, amplifiers, and accessories such as noise-dampening sheets. Additionally, the company has launched smart dash cameras specifically for the Indian market. Pioneer’s products are available through the aftermarket and as OEM-approved parts via authorized dealers. The company is also in talks with car manufacturers to directly supply its products, which would allow vehicles to come factory-equipped with Pioneer technology.
While Pioneer India designs some products at its research and development centres in Gurugram and Bengaluru, it currently imports all of its products from its manufacturing bases in Thailand and Vietnam, as no manufacturing occurs in India itself.
Looking forward, Pioneer India aims to commence local manufacturing of its products as early as the next year. The initial phase will likely involve outsourcing production through contractual agreements, eventually moving towards a joint venture for in-house manufacturing. The company also plans to use its Indian manufacturing operations as a base for exporting to other global markets, with Japan and the US being the largest markets for Pioneer Corporation.
Chief Products Officer Siva Subramanian emphasised the significance of achieving sufficient production volumes to maintain sustainable manufacturing operations. He explained that the company would initiate the India program but noted that to ensure sustainability in manufacturing, significant volumes are necessary. Therefore, while they are increasing production volumes in India, there will also be an expansion into global programs.
Although establishing manufacturing facilities in India will necessitate significant investments, the company’s management did not disclose the specifics regarding the amount of investment.
