DaimlerChrysler to up parts sourcing from India

Automaker DaimlerChrysler today said it will buy more components from India for its operations in other countries such as Japan, Germany and the US.

The German-US automaker, which sources about 20% of its components from the country, said it is relying on the Indian industry's high product quality and low price.

"Our sourcing from India has witnessed a compound annual growth rate of 20% over the years and it will significantly go up in the coming years," DaimlerChrysler Indian operation's chief Wilfried Aulbur said.

Aulbur said DaimlerChrysler is serving all the major markets through a group of Indian component makers and is looking at developing its vendor base in the country.

"Component sourcing from India is already the largest in South and South-East Asia and it will grow higher than the current level of 20%," he said.

The India chief said out of the total sourcing at present from the country, components account for 70% with the remaining being services.

Aulbur said the company expects the market for high-end products in India to grow at a rapid pace as a direct effect of the buoyant GDP growth rate.

India expects to clock a 9% Gross Domestic Product (GDP) growth rate during the 11th Five-Year Plan, starting next year.