Italian auto firm to buy parts worth Rs 1,000 cr

Italian diesel engine maker VM Motori SpA is planning to source auto components worth ¤200 million (Rs 1,066 crore) from India by 2010.

The company will source components like cylinder heads, water pump, pistons, camshaft and crankshaft.

"India offers us good quality, cost-effective components. We are planning to cut our production and source components from low-cost markets such as India and China. By 2010, our sourcing from

India would touch ¤200 million," said Giorgio Garimberti, chief executive officer, VM Motori SpA.

VM Motori has identified the New Delhi-based Continental Engine as the company's first vendor. It is in the process of selecting other suppliers, said Garimberti.

Continental will supply VM Motori with components for 10 hp (horse power) and 20 hp engines, cylinder heads, and manifolds.VM Motori had set up its office in New Delhi in March 2005. The local office currently provides design and engineering services to component makers here.

The 400-million euro VM Motori is specialised in the design and production of high technology diesel engines for global majors, including DaimlerChrysler and Hyundai.

Recently, the company celebrated the delivery of 5,00,000th engine to DaimlerChrysler.

Worldover, demand for diesel engine is growing at record levels as drivers are switching from petrol to diesel engine.

A few years ago VM started to develop a new range of modular engines, which substituted the previous range of two valves per cylinder indirect injection engines.

Today, the company makes four valves per cylinder engines fitted with the latest in common rail injection technology.