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New opportunities for automotive suppliers in India

Wednesday, January 1, 2020

The new production plant went into operation in April and has already delivered 7,000 new cars. The plant has an area of 700,000 m² and at full capacity 56,000 vehicles can roll off the assembly line each year. For the Shanghai-based SAIC Motor Corporation Ltd., the Gujarat site in the West-India region is the third automobile factory abroad after Thailand and Indonesia. The construction also marks the first investment by a Chinese carmaker in India.

SAIC suppliers India
The MG Hector model currently manufactured in India was presented by SAIC Motors in June of this year. Potential customers were able to pre-order their vehicles via the Internet and by the end of September, three months after the start of production, more than 31,000 orders had already been received. The SUV MG Hector is equipped with the i-Smart intelligent mobility system developed by SAIC. It combines remote diagnosis, anti-theft protection, remote control of certain functions and the installation of an electronic fence, a geofencing that sends a message to the owner as soon as the vehicle leaves a predefined radius. i-Smart is integrated into the vehicle as standard and is also available as a smartphone app for Android and Apple. The MG Hector is powered by a 1.5-litre four-cylinder petrol engine that delivers a maximum of 84 kW or 114 hp and 150 Nm of torque. In addition, the basic version already includes assistance systems and safety standards at European level.

SAIC sees enormous market potential in India and already announced in 2017 that it would invest 3.275 billion yuan in automobile production and a supplier park in addition to the recently completed plant. The Halol plant of General Motors, also in Gujarat, was purchased and modernized to carry out this project. The Chinese automotive company was able to create new jobs for the local population and stimulate the local economy by locating here. More than half of the components are manufactured by local suppliers and other service providers in information technology, artificial intelligence and other innovative industries benefit from SAIC Motors’ presence in India. Foreign companies are also welcome in the newly created supplier park. Automotive components manufactured locally are subject to AIS certification. We will be happy to advise you comprehensively on the upcoming certification of your company or your products for India.

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Julian Busch

About the author: Julian Busch is the founder and managing director of MPR International GmbH

Publisher: MPR International GmbH

Tel.: +49 69 271 37 69 261

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