General Motors said that it plans to source about 95% of its components from local manufacturers for its newer models.

Mr Ashwani Muppasani VP global purchasing and supply chain of General Motors India at a Federation of Indian Micro and Small and Medium Enterprises said that "The percentage of locally sourced parts and components in new vehicles can be as high as 95%.”

According to Mr Muppasani, the company expects the small and medium enterprises suppliers to adhere to the strict global quality and be certified for technical specification (TS certified) which is meant for engineering industries.

The company plans to double its current production capacity from 150,000 units to 300,000 units by 2014 and envisages a big role for small and medium enterprises. Meanwhile, the SMEs industry raised concerns on the rising number of auto component imports.

A FISME research brief said that "While there is a positive medium to long term outlook for demand in the Indian auto sector, there are concerns about rising imports of auto parts and components.”

Data furnished by the Automotive Component Manufacturers Association of India showed that auto component imports grew by 8.5% at USD 30.2 billion in 2010-11.

(Sourced from ET)