Japanese firm Oiles doubles down on India with new ₹330 crore facility in Rajasthan. Targeting EV & local automakers from 2027
Project Overview
🏭 Location: Neemrana Industrial Estate, Rajasthan (adjacent to existing facility)
📏 Scale: 26,000 sqm built-up area (2.8X larger than current plant)
💰 Investment: ₹330 crore (¥5.5 billion)
📅 Timeline:
- Construction start: June 2025
- Operations begin: February 2027
Strategic Rationale
1. Market Expansion
- EV Sector Focus: Components for electric vehicles
- Localization Push: Increased capacity for Indian automakers
- Non-Japanese OEMs: Targeting Tata, Mahindra & European brands
2. Operational Advantages
🔄 Cluster Benefits: Shared infrastructure with existing plant
🚛 Logistics Edge: Proximity to Delhi-Mumbai Industrial Corridor
🔧 Tech Transfer: Japanese precision engineering meets Indian cost efficiency
Industry Context
| Factor | Impact |
|---|---|
| India Auto Growth | 5.5% CAGR (2023-30) |
| EV Adoption | 30% of new sales by 2030 |
| Make in India | PLI incentives for auto components |
Leadership Statement
“This expansion ensures we meet growing demand while strengthening technical collaborations with Indian OEMs.”
– Oiles Corporation Spokesperson
Comparative Analysis
| Metric | Existing Plant | New Plant |
|---|---|---|
| Area | 9,300 sqm | 26,000 sqm |
| Focus | Japanese OEMs | EV + Indian OEMs |
| Investment | ₹120 crore (2018) | ₹330 crore |
Economic Impact
👷 Employment: 300+ skilled jobs
🏗️ Ancillary Growth: Boost for local MSME suppliers
📈 Export Potential: Base for Middle East/Africa shipments
Why This Matters?
🇯🇵 Japan-India Ties: Strengthens industrial cooperation
🔋 EV Supply Chain: Reduces import dependence
🏭 Manufacturing Hub: Cements Rajasthan’s auto ecosystem
Part of Oiles’ 2030 vision to triple Asian revenues. Existing plant supplies Honda, Suzuki, Yamaha. 🚗⚡
