The Netherlands beckons the Indian automotive industry with innovation opportunities to establish foothold in global markets

28-10-2009 | press release | subject: automotive industry

Offers conducive research environment for Indian automotive companies to accelerate global competitiveness

Pune, India, October 28, 2009 –In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. This growth trajectory is expected to continue; provided the industry gets the right stimulus for innovation and growth, according to a discussion forum held in Pune today, by the Netherlands Foreign Investment Agency (NFIA) and BOM Foreign Investments. The seminar was organized in the city in association with Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) and Indian Semiconductor Association (ISA) to address Indian automotive industry on the research and development opportunities present in the Netherlands.

As Indian companies look towards Europe to expand their business, setting up base in the continent would become a business imperative. “This is where, in my view, the Netherlands has a major role to play”, says Mr. Robert Schipper. He further added, “As with past recessions, it is an opportunity for high-growth industries in the developing economies to catapult themselves to top positions in global markets. Now would be a good time for Indian automobile manufacturing companies and auto component manufacturers to invest in the European market, to make the most of the innovation and knowledge capital present here and to stay ahead in the recovery phase a few years down the line.”

The Netherlands is geographically located such that it can ideally act as a key hub for international business and provides quick and easy access to all European markets. In addition the Netherlands offers an international business environment, a business-friendly tax and regulatory framework, excellent infrastructure, a highly educated and multilingual workforce and an enviable quality of life making it an ideal investment destination in Europe.

“Brabant, within the Netherlands, forms the nerve centre of the Dutch automotive industry and international collaboration in the region is intensifying every year, especially with respect to the automotive industry. Indian companies can take advantage of this open collaboration network to meet world class technology standards,” states Mr. Eelko Brinkhoff, Project Director, BOM Foreign Investments.  

For automotive research specifically, the Brabant region in the Netherlands provides the advantage of an open research network, wherein, companies can engage with institutes and researchers to conduct research on new age and innovative technologies within the sector and share research whilst working with the greatest minds in the industry.

Brabant holds the leading position in R&D investments in the Netherlands, 44% of all R&D takes place here. World class institutes such as the High Tech Automotive Campus (HTACampus) in Helmond provide a challenging and inspiring environment where automotive knowledge and business come together. It provides a home for automotive companies, automotive education institutes as well as public and private research centres, laboratories and test facilities in a spirit of cooperation, knowledge sharing and open innovation.

“The fact that the Netherlands, with an annual turnover of twelve billion Euros, has secured a place among the global top ten countries in the automobile industry is partly down to the presence of research institutes and innovative businesses. Some 50 percent of the European car and vehicle production takes place within a 500-kilometer radius of the Brabant region,” states Mr. Eelko Brinkhoff.

According to auto industry experts Indian automobile sales will grow at a CAGR of 9.5% to 13008 million by 2010 (the market was 8.45 million units in FY 05).

“To grab a share in the global automotive market, Indian automobile companies need to necessarily focus on inculcating a high level of competence and productivity.  Brabant, in the Netherlands, offers the right environment to hone this competence through their unique open research network,” affirms Mr. Anant Sardeshmukh, Additional Director General, MCCIA.

 For Indian companies who are venturing into the European market, it can be a daunting task to understand the complexities and the uniqueness of each country within Europe, and evaluate which location is most suitable and cost-effective for their business.

NFIA with its experience and knowledge assists companies with information, strategic perspective and practical assistance to discover how setting up business operations in the Netherlands can pay rich dividends all across Europe. If a company is planning a partnership in whatever form in the Netherlands, NFIA can help them find possible contacts with companies in the Netherlands or explain the role that the Netherlands could play in the field of taxation in case of a European acquisition.

NFIA assists with critical aspects like taxation and labour laws, as well as recommend appropriate experts like lawyers and accountants to assist with the due diligence and acquisition process. NFIA’ matchmaking service can also assist companies in finding an appropriate technology partner as per their needs.  All NFIA services are provided free of charge and on a confidential basis. NFIA supported 182 foreign investment projects in 2008, of which 101 were initial establishments.

In the last two years, since its inception in India, NFIA has assisted more than 25 Indian companies, large and small, to set up their operations in the Netherlands. There are around 100 Indian companies in the Netherlands today. Some of the leading names include Tata Consultancy Services (TCS), Wipro, Genpact, Interglobe Technologies, 01 Synergy, and Dishman Pharmaceuticals.