DaimlerChrysler AG aims to buy auto parts worth over Rs 500 crore (Rs 5 billion) from India during the next two years, a top official of its local unit said.
The local subsidiary, which makes the Mercedes Benz range of cars, meanwhile, hopes to drive its sales up by 17 per cent to about 1,575 units this year, S Kadlaskar, director (corporate affairs and finance), DaimlerChrysler India, told PTI in New Delhi.
"We should be exporting auto parts worth 100 million euros (over Rs 500 crore) to our parent company in the next two years. This year, it will touch 70 million euros against 63 million euros in 2002," he said, adding the company accounted for 8 per cent of total exports of auto parts from India last year.
DaimlerChrysler sources components like forgings, wire harnesses, rubber parts and castings from various suppliers in the country, independent as well as from joint venture firms.
Kadlaskar cited the aggressive cost-cutting measures by the parent company coupled with world-class quality of local components as the reasons for the increase in outsourcing from Indian companies.
He said car sales this year should touch about 1,575 units from 1,345 cars sold in 2002.
This would include 750 units of the C-Class, 650 E-Class, 75 S-Class and 80-100 completely-built-units of vehicles like SLK, CLK variants and the M-Class model.
The higher car sales were likely to increase DaimlerChrysler India's revenues to Rs 350 crore (Rs 3.50 billion) this year from Rs 320 crore (Rs 3.20 billion) in 2002, Kadlaskar said.
He, however, added that the profit before tax was expected to remain the same as last year's at Rs 38 crore (Rs 380 million) due to appreciation of the euro vis a vis rupee.
"We had done a study to look into the possibility of launching Chrysler range of vehicles in the domestic market. But we did not find it feasible. So, we will now focus on the Mercedes range," Kadlaskar said.