Auto manufacturers across the globe are betting big on India for sourcing components. Be it Germany?s luxury car manufacture BMW or Sweden?s Volvo, all have plans to substantially increase sourcing of components from the country that offers advantage in terms of cost, quality and technology. ?India is emerging as a big hub for auto components due to its competitive pricing, high quality products and high degree of competitiveness in software and engineering,? Thomas Thym, head international purchasing office India, BMW Group, said.
?We have identified 22-23 players in India and have asked them to quote their prices, the decision on which will be taken shortly,? says Thym, adding that the company now wants to focus on plastics apart from castings, forgings and rubber that it is already sourcing from India.
Even Volvo plans to increase sourcing of components from India. ?With a high level of technology, India has emerged as an important source for auto components and through the recently-inked joint venture with Eicher Motors, we plan to increase sourcing components from the latter?s Pithampur plant,? Jorma Halonen, deputy CEO, AB Volvo, said adding that these components will be used to develop Volvo products at the company?s facility in Bangalore. ?Action is expected in the commercial vehicle segment which would help export of auto component to grow by 25% at $3.5 billion during 2007-08 as against $2.8 billion in the last fiscal,? Deep Kapuria, chairman, Automotive Component Manufacturers Association, said.
