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GM to make India low-cost supply base
K. Giriprakash
Seoul , April 7

The world's largest car maker, General Motors (GM), plans to develop India as a low-cost manufacturing hub for cars even as capacity constraint in the country is hindering the company's plan to source more auto parts.

"I can't see why it wouldn't (be possible)," GM Vice-President for Manufacturing for Asia-Pacific, Mr Robert J. Moran, told presspersons when he was asked whether the company wants to develop India as a low-cost manufacturing hub just as Hyundai has done.

The company wants to create a supply base in India, which is critical to GM's plans. "Business wise it is the right thing to do," he said.

The high-cost parts need to be made locally to become more competitive. Mr Moran said the company had divided its global manufacturing system into 33 categories and standardised the systems.

However, GM Director for Purchasing, Mr Nak Jong Lee, said capacity constraint in India was hindering GM Daewoo from sourcing more auto parts from the country. Currently GM Daewoo has only one supplier from India who supplies cylinder block casting for engines worth around $1 million every year.

Interestingly, it had only 10 suppliers from China. But it is because of the huge local demand in China, which even the suppliers find it hard to meet.

Mr Moran said GM already had a technology centre in India, which indicates the global manufacturing strategy of the company.

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