Indian auto part makers could cater to Japanese demand

Indian auto parts manufacturers could be asked by Japanese automotive companies to make up for the severe shortage of components the island nation has been facing after the twin natural disasters that destroyed much of the auto ancillary assets.

Industry observers say the initial demand could flow in for the components used in vehicles for production in India as well as in Japan. These include some models of market leader Maruti Suzuki, Toyota Kirloskar and Honda Siel Cars.

The Japan Automobile Manufacturers Association (Jama), the industry body representing more than a dozen automobile companies in Japan, has been actively involved in tackling the crunch in component supplies that has threatened to further cut vehicle production in Japan.

Sona Group Chairman Surinder Kapoor said: “The situation of supplies of auto components is getting worse with some components facing severe problem. There is a possibility that Indian manufacturers have to supply some some of these. Jama is assessing the situation.”

The Sona Group, which has a turnover of nearly Rs 1,000 crore, has joint ventures with some Japanese companies for production of auto components in India. There are several such Indo-Japanese joint ventures and technical alliances with manufacturing bases in India.

“We need to see how Indian component firms can help restore production levels in Japan to the pre-earthquake level. It is a difficult situation. Sourcing of components from India by Japan could go up, but only for select models, as producing new components in India would consume more time than restarting them in Japan,” said a senior Maruti Suzuki executive.