MUMBAI: When US automobile sales skid, the wheels of fortune turned in favour of the Indian auto component industry. America’s loss-laden auto makers and their OEM component suppliers are already looking towards low-cost component manufacturers in India and China for a bail-out. And at the same time, Indian auto component makers have turned their eagle eyes on possible preys in the US.
Mark Warnsman, an auto analyst with Calyon Securities told ET: “It has been a long standing practice for American OEMs to buy components from China, India and Mexico whenever their margins are under pressure.”
This time around, OEMs are learnt to be advising their component manufacturers to also cut corners innovatively like paring weights of components, etc. without compromising on quality. “And India is an ideal destination.” Warnsman expects US companies, in their bid to trespass competition, to join hands with counterparts in India and China by starting up plants or signing up joint ventures.
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August 25, 2008
Indian component makers see rising interest from US
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