in India The Indian automotive components industry - Teknikföretagen
in India The Indian automotive components industry - Teknikföretagen
in India The Indian automotive components industry - Teknikföretagen
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• <strong>The</strong>y sign long term contracts with SMEs to ga<strong>in</strong> confidence <strong>in</strong> mak<strong>in</strong>g large<strong>in</strong>vestments• Facilitate partnerships between <strong>India</strong>n and European suppliers at the Tier 2 &3 levels to be able to atta<strong>in</strong> an optimum comb<strong>in</strong>ation of both process level andproduct level technology• Achieve the ma<strong>in</strong> objective i.e. to use advanced technology at lower cost to manufacturehigh quality <strong>automotive</strong> <strong>components</strong>Driver of growth <strong>in</strong> the <strong>automotive</strong> <strong>components</strong> <strong>in</strong>dustry<strong>The</strong> <strong>India</strong>n <strong>automotive</strong> <strong>components</strong> <strong>in</strong>dustry is atta<strong>in</strong><strong>in</strong>g a global stature, graduat<strong>in</strong>gfrom be<strong>in</strong>g suppliers for the replacement market to becom<strong>in</strong>g suppliers for Tier1 vendors and OEM suppliers worldwide. <strong>The</strong> stimulus for growth of the <strong>in</strong>dustryhas been generated by an <strong>in</strong>crease <strong>in</strong> domestic demand, entry of foreign vehiclemanufacturers and outsourc<strong>in</strong>g by global majors. Industry sources say that it canbe up to 30 per cent cheaper to produce <strong>in</strong> <strong>India</strong>. <strong>The</strong> low cost of labor, comb<strong>in</strong>edwith the availability of a large number of technology oriented workforce and strongcredentials ga<strong>in</strong>ed by the country <strong>in</strong> Information Technology (IT), electronic equipmentand electrical mach<strong>in</strong>ery have helped to build an environment conducive forgrowth of the <strong>automotive</strong> <strong>components</strong> manufactur<strong>in</strong>g <strong>in</strong>dustry. 13<strong>The</strong> follow<strong>in</strong>g factors are drivers of growth <strong>in</strong> the <strong>automotive</strong> <strong>components</strong> <strong>in</strong>dustry:• <strong>India</strong> has a long history of manufactur<strong>in</strong>g vehicles and has developed strongcredentials <strong>in</strong> eng<strong>in</strong>eer<strong>in</strong>g• Low cost of employment and a high proportion of first time right designs. <strong>India</strong>neng<strong>in</strong>eers and workers possesses <strong>in</strong>herent advantages due to their strong process,product & capital eng<strong>in</strong>eer<strong>in</strong>g skills and strong doma<strong>in</strong> knowledge of the <strong>in</strong>dustry• <strong>India</strong> is emerg<strong>in</strong>g as a global design hub with an <strong>in</strong>creas<strong>in</strong>g number of mult<strong>in</strong>ationalcompanies outsourc<strong>in</strong>g <strong>automotive</strong> design jobs to <strong>India</strong>. Global majors likeToyota have setup design centres <strong>in</strong> <strong>India</strong> and are outsourc<strong>in</strong>g design tasks.• <strong>India</strong> produces the second largest number of eng<strong>in</strong>eers worldwide at 400 000 ayear. This comb<strong>in</strong>ed with the fact that <strong>India</strong>ns are good <strong>in</strong> English is a bigadvantage, mak<strong>in</strong>g <strong>India</strong> an attractive pool of talent13) Reference has been made to <strong>The</strong> Economic Times (10th September 2007)11
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