Riding high at boom time
Beyond the glitz and glamour of cars and bikes, bigger business was done in halls 14 and 18 at the New Delhi Auto Expo. Over 500 auto component companies showcased their products and services for the automobile industry.india Updated: Jan 18, 2004 01:26 IST
Beyond the glitz and glamour of cars and bikes, bigger business was done in halls 14 and 18 at the New Delhi Auto Expo. Over 500 auto component companies showcased their products and services for the automobile industry. It is no secret that the real business at the expo and the concurrent Auto Enterprise took place there.
Over the past years, India has become a major hub for global auto component industry. The total exports of auto components out of India is expected to cross Rs 500 crore this year, up from Rs 380 crore last year. With the outsourcing boom, the big four giants, GM, Ford, DaimlerChrysler and Toyota see India as a cost competitive base for component imports.
According to S. Chand, director, automotive batteries at Exide, the industry has become world class and the expo is seen as opportunity to show our prowess to the whole world.
Exports are part of the story. The domestic demand has been booming too. Growth was 27 per cent last year. V Sumantran, R&D head of Tata Motors says that as the car market grows, development work will move to India and auto components industry will grow alongside.
Baba Kalyani, CMD, Bharat Forge says that Indian companies need to create brand equity and reputation to compete in the global arena.
His flagship company Bharat Forge, after its recent acquisition of Carl Dan Peddinghaus in Germany, is now the world's second largest forge company.
Others like Sundaram Fastener and Sona Koyo have seen exports zoom over two years.
The story is not limited to the home grown heroes. Three of world’s largest auto component companies, Delphi, Visteon and Bosch have major manufacturing facilities in the country.
The three companies between then have some 4,000 engineers working on various projects from developing next generation fuel injection systems to software development for future cars.
According to R Gururaja Rao, R&D head of Mico Bosch, “more and more foreign companies are leveraging India not only as a low cost base but also as a high quality base.”
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