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Monday, 12 May 2008

The pressure from rising input costs across the world has pushed several car companies to look for a centralized sourcing unit to control costs for them. Car manufacturers such as GM, Ford, Suzuki and Fiat have been looking at vendors from India and China to provide them with components at a 10-15 % lesser cost.

Fiat has already started such a venture by opening its international purchase office to tap vendors in India for manufacturing and sourcing required equipment and materials. This move will help them maintain profit margins while doling out benefits to consumers.

India has become a major vendor for cheap components. General Motors plans to sources components worth Rs. 4,000 Crore from India and Fiat has increased the investment for sourcing from India to Rs 1,600 Crore. Suzuki is searching for a long term partner who will cater to its global car projects.

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