In the rising Indian automotive market, India's local auto parts are doing their best to meet the demand for orders with limited production capacity, while competing with strong Chinese imported parts.
Global Trade Information Services statistics show that in February this year, India imported a total of $114 million in auto parts from China, an increase of 322% year-on-year.
Jayant Davar, president of the Automotive Component Manufacturers Association, said: "All the bets on Chinese-made parts have failed in India." The association is currently lobbying the Indian government to restrict Chinese imports.
There are many drawbacks in the auto parts manufacturing industry in India, such as unqualified quality, limited capacity, and no price advantage.
According to insiders, German automaker Volkswagen has found at least 400 suppliers in India, but it was less than 75%.
Importing parts from China may not be the first choice for automakers in the Indian market, but rising demand has forced them to make purchases from China.
Tata Motors, India's largest commercial vehicle manufacturer, revealed that despite the relatively high import prices from China, Tata had to import radial tires from China due to limited production capacity of domestic suppliers in India. In addition to radial tires, Tata also imports rims and power steering components from China. Tata News spokesperson Debasis Ray also revealed: "In addition to capacity factors, quality issues are also the reason why Tata imports some parts from China."
The fear of unstable demand is an important reason why local parts suppliers in India are unwilling to increase production capacity. A director of parts suppliers in New Delhi, India, revealed that suppliers will consider increasing capacity only when demand is stable and there is no supply risk. For these suppliers, what they are most worried about is the signing of long-term supply contracts between automakers and Chinese component suppliers.
In addition to Tata, local Indian car manufacturer Ashok Leyland Ltd also imported some parts from China and is considering a long-term supply contract with Chinese component suppliers. Ashok Director R. Seshasayee said: "The price advantage is the reason why we import parts from China." Beiqi Foton has revealed that some parts made in China can be 30% to 35% cheaper than parts made in India.
The Free Trade Agreement (FTA) signed by India last year is even worse for local Indian component manufacturers.
Global Trade Information Services statistics show that in February this year, India imported a total of $114 million in auto parts from China, an increase of 322% year-on-year.
Jayant Davar, president of the Automotive Component Manufacturers Association, said: "All the bets on Chinese-made parts have failed in India." The association is currently lobbying the Indian government to restrict Chinese imports.
There are many drawbacks in the auto parts manufacturing industry in India, such as unqualified quality, limited capacity, and no price advantage.
According to insiders, German automaker Volkswagen has found at least 400 suppliers in India, but it was less than 75%.
Importing parts from China may not be the first choice for automakers in the Indian market, but rising demand has forced them to make purchases from China.
Tata Motors, India's largest commercial vehicle manufacturer, revealed that despite the relatively high import prices from China, Tata had to import radial tires from China due to limited production capacity of domestic suppliers in India. In addition to radial tires, Tata also imports rims and power steering components from China. Tata News spokesperson Debasis Ray also revealed: "In addition to capacity factors, quality issues are also the reason why Tata imports some parts from China."
The fear of unstable demand is an important reason why local parts suppliers in India are unwilling to increase production capacity. A director of parts suppliers in New Delhi, India, revealed that suppliers will consider increasing capacity only when demand is stable and there is no supply risk. For these suppliers, what they are most worried about is the signing of long-term supply contracts between automakers and Chinese component suppliers.
In addition to Tata, local Indian car manufacturer Ashok Leyland Ltd also imported some parts from China and is considering a long-term supply contract with Chinese component suppliers. Ashok Director R. Seshasayee said: "The price advantage is the reason why we import parts from China." Beiqi Foton has revealed that some parts made in China can be 30% to 35% cheaper than parts made in India.
The Free Trade Agreement (FTA) signed by India last year is even worse for local Indian component manufacturers.
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