German component makers see India as export hub

The growth in the automatic sector in India has spurred many an overseas player to drive into the country and set up shop here.

The latest in the line is the German auto component manufacturers who are planning to set up manufacturing bases in India.

In their bid to tap India’s fast growing automotive market, they are also lining up measures to make the country a sourcing hub for export to other countries. According to industry sources, German auto component manufacturers are planning to set up manufacturing bases in India and also to make India a sourcing hub for export. With automotive industry in India growing at a fast pace, there is an ample scope for Indian automotive majors to scale up exports to other countries.

At a recent seminar organized by the Confederation of Indian Industry (CII), former chief economist at BMW, Becker, had pointed out that the focus has to on improving the quality and the production cost need to be cut down to enhance competitiveness in the global market. The car makers also need to ensure that they design fuel efficient products, which confirm to the latest emission norms, he said adding that any automotive industry has to be well-established in its own domestic market to have a stronghold in the overseas market.

Dwelling upon Toyota’s stupendous success, he added that the win-win situation as experienced by Toyota comes due to its championing of the production process. This, he pointed out that the German automotive majors have failed to achieve. Toyota also offers the best value for products, which has enabled it to strengthen its presence in the North America market selling more than two million passenger cars per annum, higher than its sales in the domestic Japanese market, it was pointed out.

With such a success story already known and fit to be emulated, the German auto component makers making a beeline for India are expected to do their homework well before starting to roll. This gains significance due to the fact that they have to be flawless and competitive when they think of India as an export hub to other markets world wide.