GM DAT MAY SOURCE
PARTS FROM INDIA
GM Daewoo Auto & Technology (GM DAT) is looking at India
as a sourcing base for auto components as well as a major market
for supplying completely knocked down (CKD) kits.
The company is also ready to roll out a next generation Matiz,
developed by its R&D facility at its Kupyang plant near
Seoul.
However, the launch of the car in India,
widely tipped as Chevrolet Spark, would depend on GM India's
current due diligence of Daewoo's Surajpur assembly unit near
Delhi. The due diligence is likely to be completed in two-three
months time. In fact, an upgrade variant of the small car
(Matiz II) is being supplied to markets like Chile as Spark.
"Our component requirements are met
mostly (80-85%) from South Korea. While we expect purchasing
from China to grow, we are also looking closely at two other
markets India and Thailand. And we believe we will have competitive
suppliers in these two countries," Mr Nick Reilly, president
and CEO, GM Daewoo, told a group of journalists from India.
According to him, since coming under GM's
control, the company has adopted advanced techniques and systems
from the parent at all of its facilities in Korea.
It also adopted GM's Global Manufacturing System, new IT systems
and Change Management Process among others, that have already
started yielding results.
Further, the company has improved the utilisation of its supplier
base by implementing GM's Worldwide Purchasing system. As
a result, orders to the tune of $600 million are with Korean
suppliers from GM Worldwide.
However, he said, the company has not
set any targets for sourcing from India.
"We have not sourced from India earlier and may source
for next generation Optra. Companies with track record of
supplies to GM India and GM Worldwide are definitely on the
list," he added.
Meanwhile, GM Daewoo's success has been
in export markets and the products manufactured by it are
sold in 120 countries globally including India. The CKD kits
for Chevrolet Optra are exported from Korea to India and the
company executives are happy that Optra has done well and
are looking at growing the business (with Indian market).
"We have started with Optra and are clear that's not
where we are going to stop," Mr Reilly said.
"We recognise a large segment of that market (India)
is in small cars. Matiz was sold and was quite successful.
We want to make it work for us and for GM India," he
added.
He said the company is working on that but there is "no
guarantee".
"It is not a finalised programme yet, since we need to
check on the suppliers and the due diligence on the factory
has to be completed. But, that's the direction (in which)
we are heading," he pointed out.
Mr Robert J Moran, GM's vice-president
- manufacturing, Asia Pacific region said the facility (at
Surajpur) is quite good. And some Daewoo products will be
rolled out from there. "If we don't come with a product
(read small car), that accounts for about 80% of the market,
"then there is no purpose in doing it".
India, he said, is fast emerging as a big market for passenger
cars after China. Over a period of time, one can see India
emerging as a low-cost manufacturing hub. With two large markets
in China and India, the Asia Pacific region will be a key
market in the years to come, he added.
