Volkswagen scouts for component suppliers

ACMA helps Volkswagen line up reliable component makers.

Volkswagen AG is scouting for automobile component suppliers in India. A two-member team from Volkswagen is travelling across the country looking for prospective Tier-II and Tier-III suppliers of automobile components.

The team, which arrived in New Delhi a week ago, is expected to spend a week more in the country to firm up plans.

The team is being assisted by Automotive Component Manufacturers Association (ACMA) in short-listing reliable component makers which will contribute to the German car maker's global outsourcing plan.

It is not known what orders Volkswagen will place with Indian automobile component manufacturers. Sources close to the development, however, said this team was independent of Volkswagen's plans to set up a greenfield manufacturing venture in the country.

"The visitors belong to the global outsourcing team which  is not part of the team that is working on the car project in India," the source said.

Some of the cities covered by the team are Bangalore, Mumbai, Pune, Gurgaon and Delhi. Suppliers visited by this team include Talbros, Delphi and Mark Auto and Mark Exhaust Systems. Some of these component suppliers confirmed Volkswagen's interest in outsourcing components from India.

The German embassy in New Delhi, too, confirmed the delegation's visit to India. Officials in the embassy said any announcement regarding Volkswagen's plans for India would have to come from its headquarters in Germany.

The team is also expected to make a presentation to members of ACMA at the body's executive council meeting in Goa tomorrow. Industry sources said the picture would become clearer only after the meeting.

As for the passenger car project, Volkswagen has been planning to enter the country for a while now. Though it has been widely reported by the media that the company may opt for Vishakapatnam in Andhra Pradesh, no official confirmation has come from Germany.

Volkswagen has a strong presence in the Asian market in countries like Japan, China, Hong Kong and Singapore. Industry sources said after China, India would be the German car maker's most ambitious project in the region.

Sources also said in terms of market potential, India had a lot more than what China could offer, including the cost advantages offered by domestic component suppliers.

India plan unfolds

• Automotive Component Manufacturers Association helping Volkswagen line up reliable component makers
• Talbros, Delphi, Mark Auto and Mark Exhaust Systems among those sounded out
• l Team to make presentation to ACMA members at the body's executive council meeting