GM aims to source $1B in parts from India

Increased manufacturing in India drives more localized sourcing

By Dave Hannon -- Purchasing, 1/15/2008 12:49:00 PM

General Motors will source $1 billion worth of automotive component from India in the next three years, according to a report in the Business Standard newspaper. Last year, biggest carmaker in the world sourced $300 million worth of parts from India.

But GM has invested $300 million into a second plant in India which is due to begin production in August, increasing the demand for domestic Indian parts. GM’s existing facility at Halol in Gujarat has a production capacity of 85,000 units per year.

And a report from Dow Jones newswires says that GM is considering manufacturing its Captiva SUV, which it recently introduced to the Indian market, in India at some point. In the report, GM India officials said the company is in talks with the Indian government and will probably make an announcement regarding a new engine and transmission plant in the next couple of months.

For more info see: When doing business in India: Take it slow