BMW, Nissan, JLR to source components from India

As the Indian auto Industry is going through a high growth phase many leading car makers of the world are planning to source components from India because of cheaper components. Carmakers which are planning to source components from India includes BMW, Nissan and Jaguar Land Rover.

BMW, which is a Germany based company is planning be buying more components from India, which currently sources components such as gears, castings and assembly parts for its bikes. The sourcing will be done through its main purchasing office in the country, said, Klaus Draeger, member of the board of management of the German company.

On the other hand companies like General Motors, Ford, Fiat and Volkswagen are sourcing components worth around $1 billion (around Rs 4,600 crore) each from India.

Jaguar Land Rover (JLR), which is a Tata Motors-owned company, has set up an office in Pune which is a part of its plan to cut costs and increase profits, as told by Rajiv Dube, president (passenger car business), of Tata Motors.

As per the Automotive Component Manufacturers’ Association of India (Acma), the industry is expected to draw more than half of its turnover from exports by 2016. At present, the turnover stands at around $20 billion.