India to supply GM 4.5K crore worth parts by 2012

General Motors, the US auto major, plans to double the level of sourcing of automotive components from India to $1 billion (Rs 4,500 crore) annually in the next two years. For the year 2010, the company has placed $550 million worth of orders to its Indian vendors.

GM sources components such as castings, forgings and metal parts from India for its various facilities around the world, a top company official said. "We have a vendor base of 250 in India who are presently supplying to our facilities. Of this, 72 vendors will also supply components to our global operations. We are looking at doubling our sourcing from India by 2012," said Karl Slym, president and managing director, GM India. GM sources components from India mainly for its operations in Europe and North America.

Talking to reporters on the sidelines of the annual manufacturing conference of the Confederation of Indian Industry (CII), here today, he said in addition to sourcing of components for global operations, GM had placed orders worth $356 million (Rs 1,580 crore) for its Indian operations. The company has two manufacturing units for passenger cars, in Halol (Gujarat, 30 km from Baroda) and Talegaon (30 km from Pune). The powertrain facility will go operational on November 12 at Talegaon, he said.

Slym said construction on a new facility to produce commercial vehicles had begun in Halol. The new factory, which would see investment of $250 million, is to be operational in the first quarter of 2012. GM has already operationalised its commercial vehicle division, which is readying a one-tonne light commercial vehicle under the Chevy brand during the first quarter of 2012, he said.

General Motors India has ramped up headcount at its R&D centre in Bangalore. The company has added 400 engineers during the current year to take the total staff strength to 2,000 direct employees, a top company official said. "We will be adding another 400 engineers at our R&D centre in Bangalore during 2011," Karl Slym, president and managing director, GM India, said.