Feeling that the business environment in India has improved after the Modi government came in, a Taiwanese business delegation is here to explore possibility of cooperation in the auto sector with an aim of tapping the big market.
The auto component companies have plans to set up manufacturing base for IT, electronic and precision machinery parts related to the auto sector and make the country an export hub to serve markets in South East Asia, Middle East and Africa.
"Demand of automobile (in India) would increase and for Taiwanese companies its a booming market. They have the capability and want a right partner to enter into this market," Taiwan's Deputy Director General of the Department of Investment Services, Ministry of Economic Affairs Bennet Wen-Bin Chen told PTI.
Chen was heading a delegation of 21 traders and investors from Taiwan in the auto parts and automobile electronics manufacturing sector to India.
The delegation had visited auto hubs in India, including Pune, Jamshedpur and Bangalore and made visits to several automobile manufacture companies such as Tata, Mahindra, Suzuki, Volvo, Toyata and Honda.
He said the Taiwanese companies are also looking to take the cost effectiveness advantage of India and look to serve overseas markets from here.
"We consider India not only for the domestic market but also possibility to use India as a manufacturing base to enter into South Asia, Middle East," Chen said.
With the new government in Centre under Prime Minister Narendra Modi, Chen said "business environment has improved and our Taiwanese companies are more confident in operating in this country whether trade or investment".
According to him, there are many fields in the auto segment such as electronics, tire, accessories, precision tools, in which Taiwanese companies are very strong.
"We are very strong in electronic as we have an expertise for all kind of electronic products to be used by car as GPS. We are quite good in supplying the GPS related work. We are also looking in the auto accessories market, precision machineries to make auto parts. We supply all kind of machine tools," he added.
Taiwan had exported auto parts and automobile electronics worth USD 11.2 billion in 2013 and out of which only USD 35 million was exported to India, which occupies 0.32 per cent of the total share.
