Indian auto component manufacturers eye global market
Monday, 26 April 2004, 07:00 Hrs
NEW DELHI: India's booming auto component manufacturers plans to capture a larger share of the global market by increasing investments on research and development, and technology up-gradation, said a survey Sunday. According to the survey conducted by the Confederation of Indian Industry (CII), India's small and medium auto component manufacturing companies are well equipped to produce products of international standards. "Besides supplying to the domestic automobile companies, Indian auto component manufacturers have now started taking strategic positions in the international markets," said the survey report. The domestic firms are focusing on reduction of production costs, improving standards, delivery schedules and incremental in-house technological innovations for the up-gradation of products. "However, more efforts are needed to innovate and develop new strategies including products and technologies," it said. According to the CII survey, the Middle East, Europe and US are the top few export markets for the Indian auto component manufacturers. The survey indicated that most of the Indian auto component companies spend around 5 million on research and development, while there are some firms that spend a whopping 10-30 million. While noting that several design and engineering companies have come up in India in recent years in the auto sector, the survey report emphasised the need for encouraging technical and financial pacts between Indian and overseas firms. Nearly 40 percent of the survey respondents felt that steel prices are extremely high and fluctuating and 40 percent of the respondents wanted improved and simplified procedures of finance availability. During the last five years, exports of Indian auto components has increased from $215 million in 1996-97 to $800 million in 2002-03, which is more than 15 percent of the total output.