DaimlerChrysler's India shopping list gets bigger

DaimlerChrysler India (DCI), a wholly-owned subsidiary of DaimlerChrysler AG, Germany, will source auto components worth a whopping $2.2 billion (about Rs 8,800 crore) from the Indian market this year.

Many international companies, including Renault, Nissan, Hyundai, Honda, Volkswagen, Audi and Toyota are already hiking the sourcing of parts from India.

DCI said that it will increase the sourcing from Indian component suppliers by about 20 per cent each year, to feed the parent company's growing international operations. It had sourced components worth about $2 billion last year.

The company plans to rope in around hundred companies for its requirements. It has tied up with 30-50 companies so far.

Wilfried Aulbur, managing director and CEO, DCI, said, "We have decided to increase our components sourcing business from India gradually. We did about $2 billion last year and will hike it by 20 per cent this year."

Finished components such as wheel rims for Actros trucks and crankshafts are among a range of products that will be exported to Germany and other DCI facilities.

Interestingly, the value of components sourced from India will be more than the company's revenues in the country. Being a privately held company, the management refused to disclose its revenue figures.

DCI plans to start assembling Actros trucks at its Pune plant before the year-end. A total of 51 trucks (tippers) have been already sold in the country. They are mainly used in mining and construction activities. Assembling the trucks in India will drastically reduce the prices.

The company has tied up with bus body maker Sutlej to make intercity luxury buses and the production is due to start next year.

The buses will be priced on the lines of the main competitor, the Volvo's B7R, which now costs about Rs 55 lakh to Rs 60 lakh.

The company said that it will go slow on production of these high-end buses in order to tap the market properly. Engines for the commercial vehicles will be sourced from Germany.

"We can think of setting up an engine assembly line up as and when it is viable," Aulbur said. The company does have space at the Pune complex for such a facility.