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DaimlerChrysler to drive into India for components
By siliconindia staff writer
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Tuesday, 04 May 2004, 19:30 IST
AHMEDABAD: Luxury car maker DaimlerChrysler is looking at sourcing components worth $ 100 million from India by the year 2006.
Suhas Kadlaskar, director, corporate affairs and finance, DaimlerChrysler India, told Eonomic Times that the components sourced from India by Daimler Chrysler the maker of Mercedes Benz constitute a significant 8.5% of India's total auto component exports. However, these components form less than 1% of the total global requirements of the German auto giant.
The global affiliates of the auto maker sourced components worth $75 million in the calendar year 2003 and the component exports are expected to be in the region of $ 80 million in the year 2004. There is a huge untapped potential which Indian companies can target, Kadlaskar said.
DaimlerChrysler looks at India as a significant sourcing hub because of the major cost advantage and large pool of engineering talent in the country, he added.
In fact a separate division with the Indian subsidiary DaimlerChrysler Purchase Liaison Office comprising senior representatives from the foreign parent, exclusively scouts component manufacturing entities in India for its global requirements.
Meanwhile, the company is also busy sprucing up its dealer network by setting up more service stations in the country.
The company is planning to sell about 1,850 cars this year as against 1,581 units sold in the last calendar year and 1,208 cars sold in the year 2001. Mercedes 'C' class and 'E' class are expected to drive the volumes for the company.
There have been very serious queries about Maybach and we are expecting good numbers, he said. The Pimpri plant of the company, is likely to hit 50% of its potential capacity in the next calendar year.