French automobile group PSA Peugeot Citroen has placed orders for components worth Euro nine million with Indian companies.
Though this is a fraction of the Euro 31 billion worth of auto parts the group buys in a year, there are indications that more is in the pipeline. A PSA team held discussions with a panel of manufacturers in India during the six-day Auto Expo which concluded on Tuesday in New Delhi.
"The group buys less than five per cent components from low-cost countries like India but we have been told that this can go up to 25 to 40 per cent in the coming years," said Vishnu Mathur, executive director, Automotive Component Manufacturers' Association. He said India should be able to capture four per cent of this.
"Indian component companies compete with other low-cost producers from Brazil, Argentina, Eastern Europe, South East Asia and China," Mathur said.
Describing the expo as a success, members of the organising team from Confederation of Indian Industry, Society of Indian Automobile Manufacturers and Automotive Component Manufacturers' Association on Tuesday said the visitor turnout crossed 10 lakh, 20 per cent more than the 2004 expo.
In terms of participants, the auto component industry surpassed all records, with over 250 members taking part. "Going by initial reports from the expo, commercial vehicle exports are set to double in the near future," said Dilip Chenoy, director general, SIAM. The value of deals struck at the expo by the component sector crossed $150 million, Mathur said.
