Nano vendor base is going to be greatly benefitted in next few years. Nearly every car major automaker in the country is planning to launch a small car model in India and other emerging markets. OEMs like Toyota, Honda, Nissan, Renault and Volkswagen are approaching these vendors for supplying parts for their upcoming small car models.
There are nearly seven small car models slated for India launch in next 24 months. Nano competitor from Bajaj is also slated for a launch in next two years. All these small car and ultra-cheap car models are looking at sourcing extensively from Nano’s 100-odd vendor base. This sends cheers amidst these vendors as they look at good business prospects lined up for next two decades after the worst nightmare faced last year.
Chairman of Auto Components Manufacturers Association ACMA, Jayant Davar, states that it is inevitable for the carmakers to use vendors from Nano and Bajaj pool of vendors. “They are looking at launching their vehicles at lower prices than their existing range. But before they tie up officially, they want their components to be validated by their Japanese and other overseas parents,” he said.
Although all car makers deny replicating Nano, the fact is the small car market in India comprises of 80 percent which cannot be overlooked by any automaker who wishes to generate volumes in the country or any emerging market.
