Indian auto-part makers, hurt by a global slowdown, are now eyeing the Chinese market to boost sales and protect margin.
"Global automotive giants are finding it difficult to deal with Chinese component-makers, especially with reference to the issues of quality and pricing,'' said Rishi Bagla, the Bagla group's joint managing director.
"This opens an excellent business opportunity for Indian component-makers on the global business front," he added.
Based in Aurangabad, the Rs 450-crore (Rs 4.5 billion) Bagla Group is involved in aluminium casting business and delivers shafts and spindles to firms such as Bajaj Auto, Lamborghini and Piaggio.
"We need to tap the overseas market as profit margin in domestic business is low. We plan to increase our sales with global OEMs to 50 per cent of our total business. For this, we need to overcome Chinese firms in the same segment," said Bagla.
The company has overseas sales of Rs 45 crore (RS 450 million).
Vanaz Engineering, which has expertise in delivering fuel injection systems and other components to two- and four-wheelers, also has a similar strategy.
"We have won orders from certain multi-national auto players, who were earlier trading with Chinese players. Considering the difficult days ahead, we have planned our growth in a way that won't affect our growth," an official heading the sales division said.
Other auto-component
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