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August 11, 2005
India to export $2.7 billion worth auto parts by 2010
Low production cost is major advantage of India. Automobile parts made in India can cost as much as 30% less than equivalent ones made in the U.S. and Europe and are about 15% cheaper than those from South Korea and Mexico, according to General Motors.
Toyota Motor Co. (TM ) which makes Land Cruiser, Prado, Innova and Camry in India has just started exporting 150,000 transmissions to other Toyota plants in Southeast Asia.
US auto giant General Motors said last week it expects to source $1 billion worth of autoparts a year from India by 2008, compared with $120 million this year.
Domestic car sales have soared by 25% in the past year, to more than 1 million vehicles. Tata and Mahindra are exporting, while Hyundai Motor Co. is using India as a manufacturing and export base for its compacts to Europe.
Indian forging and castings companies such as Bharat Forge Ltd. are exporting 40% of production to clients like DaimlerChrysler and Cummins Engine Co.
Some Indian parts makers are seeing sales growth of as much as 30% a year, and India's Automotive Component Manufacturers Association expects exports to reach $2.7 billion by 2010 from $1 billion today.
Posted by admin at August 11, 2005 05:46 AM