Cummins Expanding Market Reach in India

Jan. 31, 2006
Increasing capacity for diesel, natural-gas engines

Cummins Inc. and Tata Motors have a new agreement that will allow their joint venture, Tata Cummins Ltd. (TCL), to begin manufacturing the ISB engine. The expansion will increase the number of engines produced by the joint venture from approximately 69,000 Cummins B Series engines to 100,000 units per year within two years, and 120,000 units beyond that time. The engines produced by TCL will meet Euro 2, Euro 3 and Euro 4 Indian and European standards for diesel emissions.

The estimated $60 million expansion will be funded by the venture’s ongoing cash flow, as well as financing secured by the venture.

TCL was formed in 1992 and manufactures the Cummins B Series engines in India for use in trucks manufactured by Tata Motors (TML), and for sale by Cummins in India to other applications and OEMs. Tata Motors is the largest truck producer in India.

Also, the Cummins Westport Inc. (CWI) joint venture and Cummins India Limited have launched limited production launch of CWI's B Gas International (BGI) natural gas engine at CIL's modern Daman facility, in western India. Cummins Westport is a joint venture of Cummins Inc. and Westport Innovations Inc. that manufactures low-emission, alternative-fuel engines for commercial transportation.

The BGI was unveiled at the Auto Expo in New Delhi on January, and domestically manufactured BGI natural-gas engines will be supplied to Indian OEMs -- including Tata Motors. It is now in service for buses in New Delhi.

"Local manufacturing of our lean-burn, spark-ignited BGI engine by CIL is vital to any growth in India," said Guan Saw, president of Cummins Westport Inc. "The successful production launch is a key milestone for CWI. The availability of a low cost locally manufactured BGI engine will enable CIL to leverage their long-term relationships with India's largest OEM's, both in the domestic Indian market and the target export markets of these OEM's."