Though the global auto makers look
toward India for auto components,
Indian companies are increasingly
heading for China.
A news report has said that while
global players are coming to India,
Indian auto companies are engaging the
dragon. The report said that,
globally, most cars are made using
components made in India. Majors such
as General Motors, Ford, and Daimler
Chrysler source almost 70 per cent of
their components from India. And, that
results in exports worth almost Rs
9000 crore, said the report.
Besides, it has been said that General
Motors plans to increase sourcing over
the next five years to $1 billion
annually. This will in turn help in
India getting a lion's share. This
apart, Ford Motor also plans to source
components worth $500 million from
India, while Daimler Chrysler's
component exports rose 20 per cent
last fiscal, the report added.
It is clear that global original
equipment manufacturers eye India even
though they have a large presence in
China. This is apparently due to the
design capability of Indian
engineering professionals for
components that require a high element
of design, development validation and
testing, said experts. Further, India
is seen as offering a better cost
advantage.
Incidentally, Indian companies like
Tata Motors, Mahindra and Mahindra,
and Bajaj Auto import components from
China. In fact, component imports from
China to India have seen an increase
of almost 120 per cent last year.
However, global majors are
increasingly heading for India to
source auto components from India.
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