Koito Manufacturing Company shall be re-designing its headlights with cheaper components and lesser expensive technology to supply it to Tata Motors. Koito currently designs headlights for Lexus brand of cars. It now aims to gain more business from Tata Motors and Nissan Motor Company.
Koito currently manufactures headlights for one of the most expensive brands like Lexus but it shall now be creating simpler lights for the emerging market of ultra-cheap cars. The simpler lights shall use half as many parts as compared to other expensive models. As Tata plans to sell Nano this year at $2500 and Nissan also plans to launch similar car in next two years, it has become imperative for Koito and other auto part makers to cater to these demands with cheaper products.
“Koito has no choice but to push into this low-cost market as all the carmakers get into the business,'' said Kunihiro Matsumoto, a senior analyst at UBS Securities Japan Ltd. in Tokyo. “Costs won't bump up with Koito using existing technology and cheaper labor.”
Koito had opened its second plant in Haryana earlier their year which is in vicinity of manufacturing plants of other automakers like Maruti Suzuki Ltd.
