Major suppliers to Tata’s Nano are being identified and targeted by global OEMs seeking to make their own low-cost cars, according to an Indian media report.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A report in India’s Economic Times says that the international firms taking an interest in Nano suppliers include Renault-Nissan, Toyota, VW and Honda.
The report adds that Nano’s only planned direct competitor in India, Renault-Bajaj’s ultra-low-cost car, is expected to draw extensively from Nano vendor base.
“It would inevitably use [the Nano parts suppliers]. The project will source almost 100% from the Bajaj supply base, but many suppliers in that pool are also common to the Nano,” said a person with direct knowledge of the Renault-Bajaj ultra-low-cost car project, quoted but not named in the ET.
Officials with ACMA, the apex body for the auto component industry, said carmakers, two-wheeler manufacturers and commercial vehicle companies were trying to halve the cost of their new products, the ET said.
All of them are looking at replicating the Nano experience in their products, said Jayant Davar, president of ACMA and vice-chairman and managing director of Sandhar Technologies.
“They are looking at launching their vehicles at lower prices than their existing range. But before they tie up officially, they want their components to be validated by their Japanese and other overseas parents,” he said.
