Fiat sets up a purchase office in Delhi
2008-05-08
Well known Italian car maker Fiat Group has set up a purchasing office in New Delhi as it seeks to source as much Rs1,595 crore worth of auto components from India as the components are cheaper in India.
According to Gianni Coda, Chief Executive Officer of Fiat Group Purchasing, "the company will purchase whatever is possible to buy from India. The company feels that one have to be very competitive in selling cars, selling trucks, selling tractors.
Fiat came to India 50 years ago and at present sells cars through Tata Motors Ltd dealers. By revenues if you see, India is the India is largest auto maker. Indian component makers sell 12-15% cheaper than those from Western Europe.
Other foreign car makers like General Motor and Volkswagen are also increasing their sourcing of auto components from low-cost countries in general and India in particular. For instance, GM plans to buy up to Rs 4, 120 crore worth of auto parts every year from India by the turn of the decade.
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