DaimlerChrysler India, which has a $2 billion auto components exports business, is looking to grab a larger pie of the cost-effective components from India.
Interestingly, the company’s components export business is higher than its revenue from car sales in India. The company is aiming at optimising its localisation of contents for products not only to be introduced in India, but even for its global operations.
Wilfred Aulburs, managing director and CEO, Daimler Chrysler India told FE, ?India and China are two of the most important markets for global sourcing for DaimlerChrysler. Our export is still not as significant as we would like it to be. China is growing faster than India and we will like to match their growth rate. The numbers can only grow from here.?
Exports of components from India is currently larger than the whole of Southeast Asia put together, the company sources believes India has a huge potential to be the export hub of the entire global operations. The company plans to increase its vendor base by 10-15 from the current 35-45 within the next one year.
?We are trying to qualify the Indian suppliers to delivers goods and components for our global operations in Japan, Germany or even US,? added Aulburs. The largest truck maker in the world is also banking on its flagship truck, Actros, which it currently imports in India as completely built units (CBU?s) to drive its commercial vehicles foray in India.
With the opening of its new plant in Chakan, the company will assemble the trucks in India, for which, Aulbur says, ?The localisation of Actros is going to be as high as possible.?
The company is setting up a new plant at Chakan, which is expected go on stream beginning 2009. It will begin the assembly of Actros by the end of this year and will start manufacturing of its luxury bus in the first or second quarter of 2008.