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General Motors to increase engagement with SMEs in India for localisation
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Written by Viswanath   
Wednesday, 31 August 2011

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Faridabad: General Motors India envisages a big role for small and medium enterprises as it plans to increase its current production capacity from 150,000 units to 300,000 units by 2014. The company plans to source nearly 95 percent of its components from local manufacturers for its newer models.

Ashwani Muppasani, vice president, global purchasing and supply chain, General Motors India said that GM was focusing on domestic component manufacturers particularly SMEs. He said that the SME suppliers were expected to adhere to the strict global quality and be certified for technical specification.

He was speaking at a Federation of Indian Micro and Small and Medium Enterprises (FISME) - Small and Medium Enterprises Rating Agency (SMERA) event entitled  -'Profit from Knowledge Series- Auto Sector' in Faridabad.

GM has around 444 qualified suppliers in India, of which nearly 200 supply to both domestic and global operations. The company has already awarded contracts to them for components worth approximately US$ 500 million. GM has a Supplier Footprint Optimization team in Bangalore, which works with Indian suppliers to improve their capability.

Keiji Nakajima, former Chairman and Managing Director of Sumitomo Corporation of India, said that the real source of technologies in Japan were not large corporations but SMEs. Having spent over 30 years in India, he said that Japanese SMEs did not have correct perceptions about India.

According to a FISME research brief there has been a rising trend of imports of auto components from ASEAN countries. Data furnished by the Automotive Component Manufacturers Association of India showed that auto component imports grew by 8.5 percent at $30.2 billion in 2010-11. FISME secretary general Anil Bhardwaj said that the impact of the India-ASEAN free trade agreement also needs to be monitored.

 
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