Financial Daily from THE HINDU group of publications
Wednesday, Jul 09, 2003
Financial Daily from THE HINDU group of publications Wednesday, Jul 09, 2003 |
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Corporate
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Outlook Fiat India targets Rs 53-cr auto parts exports Neha Kaushik
NEW DELHI, July 8 FIAT India is targeting to export automobile components worth 10 million euros (about Rs 53 crore) to Fiat subsidiaries globally this calendar year. "We are at present exporting components to Fiat subsidiaries in Italy, Poland, Turkey and South Africa", Mr Prabhakar Duvedi, Vice-President, Purchase, Fiat India, told Business Line. The export components constitute primarily sheet metal, machines castings and components and rubber components. According to company officials, around 170 components are being exported through Fiat India to the various markets. Though the company, till now, has been exporting components for the Uno, the Palio and the Siena, it will soon start exporting auto parts for the Fiat Stila and other models as well. According to Mr Duvedi, the sourcing of auto parts has resulted in substantial savings for the company. Fiat had recently taken a delegation of local vendors to the company's headquarters in Italy to resolve upon the areas that hold potential for sourcing. Fiat follows a system called World Material Flow (WMF) for components sourcing. This system integrates Fiat's operations globally and offers every market the opportunity to become a global supplier depending on its ability to compete, taking into account the price and quality requirements. With the growing competitiveness of the auto components industry, many foreign auto makers have decided to make India a component sourcing hub. Meanwhile, in addition to expanding the scope of component exports, Fiat India is also keen to grow the export potential of its cars. According to a company official, Fiat India has already begun exporting to markets such as Sri Lanka, Nepal and Bangladesh, and is now looking to develop key South-East Asian markets such as Singapore and Malaysia. Officials say that the degree of localisation of the Palio (at 87 per cent) and Siena (at 80 per cent) have ensured competitive pricing.
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