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As the Indian auto industry comes of age and a number of new entrants enter this fast-growth market, many original equipment manufacturers (OEMs) are looking at entering India through the contract manufacturing route.
This offers many advantages: economies of scale, smaller investments, design & engineering outsourcing and the ability to a new market without having to bring in the entire product range.
Some Indian companies such as Maruti Suzuki and Mahindra & Mahindra are already offering contract manufacturing services for complete vehicles (not just components) but others are also realizing the growth potential in this business.
Contract manufacturing means offering complete manufacturing solutions or services such as vehicle design and conceptualization.
Maruti Suzuki India has signed a pact with Nissan Motor Company for supplying 50,000 units of the Concept A Star compact car; M&M is already making the ‘Logan’ at its facility at Nashik and supplying it to the M&M-Renault marketing arm for sales within the country.
Source: Dnaindia.com |
