CTS was awarded a new production program for a small engine throttle position sensor (SETPS) by an Indian Tier 1 motor-bike supplier. The SETPS will be part of the carburetor assembly on engines for motorcycles and a key component that will enable the motorcycle manufacturer to meet tightening emission standards that are being introduced in India.
Production is to begin late 2009 with 2010 revenues from this initial win approximating $1.5 million, with additional growth potential as multiple platforms adopt this technology.
CTS says, the large Indian motorcycle market, with approximately seven million two-wheeled motorized vehicles being produced annually, continues to experience strong growth. As emission laws are tightened through the implementation of Bharat Stage III and IV emissions requirements, and more OEMs adopt sensor technology, CTS is well-placed to grow its sales in India. To enhance opportunities in this market, CTS recently announced opening a liaison office near New Delhi and has entered into a Marketing Agreement with ZF Electronics TVS.
Both for car and bike component suppliers, Indian automotive market is becoming more lucrative with more local designs turning successful.