Himalayan News Service

New Delhi, April 17:

Despite stiff competition from countries like China and Mexico, India is increasingly becoming a sourcing base for auto majors seeking completely built-up units (CBUs) as well as outsourcing of components, an industry study has highlighted. “Global automobile majors like Hyundai, Ford, Skoda, Suzuki and Mahindra have made India a manufacturing base for particular models of cars. At the same time, other multinationals like Toyota, GM, and DaimlerChrysler are making India a hub for components,” says the Associated Chambers of Commerce and Industry of India (ASSOCHAM) study released today.

It points out that Mitsubishi and Yamaha have made India a hub for 125cc motorcycles. Of the total global auto components trade of $185 billion, India’s share is 0.4 per cent while China accounts for 1.2 per cent and Mexico 5.9 per cent. “The present sourcing of auto components from low cost countries (LCCs) worth $65 billion may actually reach $375 billion by 2015,” the study says. The global auto component industry was expected to touch $1.9 trillion by 2015, of which around 40 per cent ($700 billion) was expected to be sourced from low cost countries like India.