It’s a celebration time for the component manufacturers in India as small car race is in full swing among car manufacturers. In this time of downturn when car buyers are maintaining distance from expensive cars, companies are bullish to introduce more small cars to sustain their business in the market. And delightfully all these cars use local components which in turn benefits component manufacturers. This brings more work to the recession hit component manufacturers and also gives them a chance to reconcile their lost grip of the market.
Car brands like Volkswagen, Ford, BMW and Skoda is planning to introduce more small cars in domestic as well as in the international market. Volkswagen will also roll out Polo from the small car segment by mid 2010. All these small cars will attract nearly 70 to 80 percent of local components. This will not only lead to a good opportunity for the component manufacturers in India but will also reduce the price of the cars drastically. Well, the production of small cars is benefitting component manufacturers as well as car manufacturers.
Finally there is some ray of hope among the car component manufacturers. I had read about their struggle. This will not only help the component makers but the pricing will be also low.
It is time that the component manufacturers got a share from the huge small car segment. Most small cars have high amount of amount of localisation, which means that India benefits from every car sale. Which means it is good for Indian business. But the big difference will be made when the likes of BMW, Honda, Skoda, Audi source all their component from India. This will mean transfer of technology also.
This is very interesting to see the transition in the US from SUV's to smaller more efficient vehicles. I think its a great idea and hope it has positive results.
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