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Spare parts to get cheaper from Jan 2013
"We are now taking components from few suppliers who have shifted base from Japan to the Asean region to derive benefit from lower tariffs applicable from this region," said Sudam Maitra, managing executive officer (supply chain) at.
Indian automakers have been increasing imports from Asean and China to drive benefits of cheaper priced components. A study conducted by the industry chamber, Federation of Indian Chambers of Commerce and Industry (Ficci), stated that imported auto components form over 30% of the total Indian domestic market. Imports from Asean countries have also shown rising trend with Thailand leading the pack and emerging as the largest exporter of engines. Around 32% of engines imported by India, especially in the diesel segment, come from Thailand with major importers being companies like Toyota Kirloskar Motors and Ford India.
Companies such as Honda, which have been battling to keep its costs competitive, is now importing critical parts from Thailand as it look at ways to pass on the lower tariff benefits to customers.
The Society of Indian Automobile Manufacturers, the body of automaker in India, said that the lower tariff would help the industry to control costs in the long term. "There has been direct impact from the fluctuating currency and high commodity prices. Lower tariffs would help in cushion some impact of such rising costs and make the Indian industry globally competitive," said a senior executive of SIAM.