GM India to use 95% localized content in its newer car models

Saturday 03 September 2011, 11:48 AM by Vikas Yogi

The Indian unit of the US based leading auto maker General Motors announced on Thursday that it plans to source about 95 percent of the components locally for its new car models. While speaking to reporters at an event of Federation of Indian Micro and Small and Medium Enterprises (FISME), in Faridabad, Mr. Ashwani Muppasani, vice president, global purchasing and supply chain, General Motors India said, "The percentage of locally sourced parts and components in new vehicles can be as high as 95 percent."

By year 2014, the company plans to register a double fold increase in its production capacity to 3,00,000 units per annum from current capacity of 1,50,000 units.

Notwithstanding the above, concerns have been raised by SMEs industry over the increasing import of the auto components. In a research brief issued by FISME, it stated, "While there is a positive medium-to-long term outlook for demand in the Indian auto sector, there are concerns about rising imports of auto parts and components."

In the financial year 2010-11, the imports of auto components have surged about 8.5 percent to $30.2 billion, as per the data issued by Automotive Component Manufacturers Association of India ( ACMA).

GM India is currently one of the leading car makers in the Indian market with a considerably large portfolio in the country. The company sells a range of cars in the Indian market including small cars like Spark and Beat, premium hatchback U-Va, entry level sedan Aveo, premium sedans Optra Magnum and Cruze, and luxury SUV Captiva.