Japanese suppliers urged to invest in India

Respond to Japanese OEM's initiatives to meet increased production for model launches



Japanese OEM's bases in India
Japanese OEM's bases in India

  This report describes recent trends among Japanese parts suppliers in India (covering the nine-month period up to the beginning of August 2013). Indian auto industry registered a single-digit growth in 2012, as it did in 2011, with auto production at 4.14 million units (up 5.3% year over year) and vehicle sales at 3.59 million units (up 8.9% y/y). The monthly vehicle sales in the period from January to July 2013 shrank 6 to 15% compared to the same period a year earlier due to the high interest rates and fuel prices. As a result, some Japanese parts suppliers in India are running their plants at low operating ratios. Nevertheless, auto manufacturers have medium-range plans to increase production that are urging Japanese parts suppliers to start operating in India or continue to invest in increasing their production capacities there.Their investments are taking place in northern states (Haryana, Rajasthan, Uttar Pradesh, etc.), southern states (Tamil Nadu, Karnataka, Andhra Pradesh, etc.) and western states (Maharashtra, etc.).

Japanese Suppliers Related Reports:

  Chinese Northern/ Northeastern/ Southwestern Regions (Aug. 2013),
  Southern and Central China (Aug. 2013),
  Eastern China Region (Jul. 2013),

  U.S (Jul. 2013), Mexico and Brazil (Jun. 2013), Thailand (Apr. 2013),
  South East Asia (Mar. 2013), Russia and Eastern Europe (Jan. 2013)

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