Peugeot places Euro 9mn order

8th AUTO EXPO 2006

French automobile group PSA Peugeot Citroën has placed orders for components worth Euro nine million with Indian companies. Though this is a fraction of the Euro 31 billion worth of auto parts the group buys in a year, there are indications that more is in the pipeline.

A PSA team held discussions with a panel of manufacturers in India during the six-day Auto Expo which concluded today.

"The group buys less than five per cent components from low-cost countries like India but we have been told that this can go up to 25 to 40 per cent in the coming years," said Vishnu Mathur, executive director, Automotive Component Manufacturers' Association. He said India should be able to capture four per cent of this.

"Indian component companies compete with other low-cost producers from Brazil, Argentina, Eastern Europe, South East Asia and China," Mathur said.

Describing the expo as a success, members of the organising team from Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers' Association (ACMA) today said the visitor turnout crossed 10 lakh which was 20 per cent more than the last expo in 2004.

In terms of participants, the auto component industry surpassed all records, with over 250 members taking part.

"Going by initial reports from the expo, commercial vehicle exports are set to double in the near future," said Dilip Chenoy, director general, SIAM.

The value of deals struck at the expo by the component sector crossed $150 million, Mathur said.

The organisers, however, said improvements were needed in infrastructure and layout of pavilions. Due to demand for large space, the organisers said no to alternative locations though Haryana and Uttar Pradesh governments had evinced interest in hosting the next edition of Auto Expo in 2008, said sources.