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Automobile Sector

Indian auto part makers go overseas

Indian auto components makers are scouting for distressed firms in the United States and Europe to gain a foothold in these markets and access technologies and clients even as western manufacturers look to trim costs.

Exports of auto components from Indian firms, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25 per cent a year in the past five years.

Consulting firm McKinsey has forecasted India's exports to hit $20-$25 billion by 2015, as nearly 40 per cent of an estimated $1.7 trillion in auto components requirements is likely to be outsourced to low-cost countries by then.

Indian firms want to grab a share of this market and are expanding at home, while eyeing overseas acquisitions to quickly access capacity and customers.

India has around 450 firms making branded auto parts, with another 5,000 in the unbranded space, mostly clustered near the vehicle manufacturing hubs in New Delhi, Mumbai and Chennai.

Tata Motors plans to launch Indigo in Russia

Tata Motors is planning to introduce its Indigo car in Russia. Initially the kits for the assembly of Tata Indigo would be imported from India and subsequently 100 per cent localized.

Tata Indigo would have to compete in the market segment currently occupied by Renault Logan, Daewoo Nexia, Huyndai Accent.

Tata Motors has already set up truck and bus assembly lines in Russia’s three regions.

Another Indian automaker Mahindra & Mahindra is about to launch experimental assembly of their Scorpio SUVs in cooperation with Russia’s leading automaker GAZ, which produces Volga cars and light commercial vehicles.

Initially 100 Scorpio SUVs will be assembled at GAZ in Nizhnynovgorod on Volga with the kits imported from India.

Rolls-Royce launches Rs 3.5 crore Car Phantom in India

Rolls-Royce has launched the phenomenon Phantom here in India. This car is going to cost an amazing Rs 3.5 crore and comes powered by a 6.75-liter V12 engine. Despite its huge size, the car accelerates from 0-100 kmph in just 5.9 seconds. This perhaps makes it one of the snippiest automobiles in the Indian market.

The company has already delivered one of the units since its relaunch in the Indian market. In addition, they already have confirmed orders for five more phantoms. The company expects to sell just 10-12 units of this car in the Indian market per year.

 

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